8th Pay Commission: Gazette notification delay crosses 237 days; all you need to know

"We are all proud of the efforts of all Government employees, who work to build a Viksit Bharat. The Cabinet's decision on the 8th Pay Commission will improve quality of life and give a boost to consumption,” PM Modi had said in a social media post on X.

The terms of reference and other decisions related to the 8th Pay Commission will be taken in due course, the government later informed the Parliament.

However, the government is yet to issue the gazette notification of its Terms of Reference, chairman and other members.

After the pay panel is constituted, it may take over 1.5 years before submitting its recommendations to the Government. Let’s look at the latest news updates around the 8th CPC.

8th CPC Terms of Reference

The government asked for the stakeholders’ inputs in January and February 2025, but the inputs are still being received, and the official notification would be issued in due course, it said.

"Inputs for the terms of reference of the Eighth CPC had been sought from the Ministry of Defence, Ministry of Home Affairs, Department of Personnel & Training and all the States vide communications dated 17.01.2025 and 17.02.2025," Union Minister of State for Finance, Pankaj Chaudhary, said, replying to a query in the Rajya Sabha on August 12.

The pay revision is expected to be implemented from January 1, 2026. However, the official announcement of the raise could be made by late 2026 or even in 2027.

This is because, in the past, as well, the pay commissions have taken 1.5-2 years before submitting their recommendations to the Government.

The government is yet to even form the pay panel and select candidates for various positions, including chairperson, members and clerical staff.

The 7th Pay Commission was announced on September 25, 2013, and its Chairman and the Terms of Reference were notified around 156 days later on February 28, 2014.

However, it has now been 237 days since the 8th CPC was announced on January 16, 2025.

Many stakeholders and pensioner bodies have been asking the government to provide clarity and fasten the 8th CPC set-up to ease the concerns among employees and pensioners.

Despite the delay, the new pay panel will follow the timeline provided in its Terms of Reference (ToR), the Finance Ministry said in July.

AICPI-IW data

The All India Consumer Price Index for Industrial Workers (AICPI-IW) released recently for July 2025 signalled a potential boost in the fitment factor and minimum salary under the 8th CPC.

A higher AICPI-IW data leads to a higher DA, which then contributes to a higher minimum pay. DA is actually a major component of the fitment factor recommended by a pay commission.

The AICPI-IW index in July 2025, as per the Labour Bureau, jumped 1.5 points from 145 to 146.5. This number will most likely play an important role for the upcoming months till December 2025, thus becoming crucial for determining the DA rate for the month of January 2026. The January 2026 rate could then be considered while deciding the minimum pay and fitment factor under the 8th CPC.

Note: The DA rate will reset to zero after the implementation of the 8th Pay Commission. Importantly, the government is expected to announce revised DA/DR with effect from July 1, 2025, in September (this month).

8th CPC benefits

The 8th CPC is expected to provide an increase in the take-home pay of the pensioners, similar to the hike in employees’ salaries, which would be based on the fitment factor.

The pensioners will get similar benefits to government salaries, as per a report by Ambit Capital. The pensioner’s monthly basic pension could increase by the fitment factor, ranging from 1.8 and 2.15 to 2.46.

Another report by Kotak Institutional Equities said that the fitment factor is expected to be 1.8, which could result in around a 13% increase in real pay after adjusting for inflation.