Personal Finance News
4 min read | Updated on July 24, 2025, 08:29 IST
SUMMARY
8th Central Pay Commission projected timeline of implementation: A new report anticipates that the 8th CPC-based salary and pension revisions will be rolled out during the last three months of 2026 or the first three months of 2027. And it may take up to another 9 months for actual implementation.
Here's when 8th CPC recommendations may be implemented if its notified now. | Image source: Shutterstock
In recent weeks, several market experts have also attempted to estimate the expected timeline for the implementation of the 8th Pay Commission.
Another report by Kotak Institutional Equities (KIE) expects the 8th CPC-based salary and pension revisions to be rolled out during the last three months of 2026 or in the first three months of 2027, which are the third and fourth quarters of FY27, respectively.
However, experience from the past pay commissions suggests implementation of the 8th CPC may be delayed till FY28. Let's look at what happened in the previous pay commissions:
The 6th and 7th pay commissions took around 1.5 years to submit their reports.
The fourth and fifth pay commissions took around 3 years to submit their reports.
After the commission submits its report, the government may take another 3-9 months to implement the recommendations.
From the above, it's clear that the total time taken for the implementation of a pay commission's recommendation may be around 21 months to 27 months or even more.
Suppose the government sets up the 8th CPC on August 1, 2026 and it matches the speed of the 6th and 7th CPCs in submitting the new recommendations. In this situation, the 8th CPC may be able to submit its report in around 1.5 years or 18 months, which will come in February 2027.
If the Government takes another 3-9 months to give final nod to the recommendations, then one may expect the implementation of 8th CPC recommendations between May 2027 to November 2027, which will fall in FY28.
Milestone | Expected Timeline | Notes |
---|---|---|
CPC Notification | August 1, 2025 (Hypothetical) | Government may formally set up the 8th CPC |
Report Submission | February 2027 | Assuming 18 months (like 6th & 7th CPCs) |
Govt. Approval & Implementation | May – November 2027 | 3–9 months post-submission; falls in FY28 |
Alternate Estimate (KIE) | Oct–Dec 2026 or Jan–Mar 2027 | Could be implemented in Q3 or Q4 of FY27 |
Arrears Effective From | January 1, 2026 | Salary/pension arrears may be backdated |
Fitment Factor (Expected) | 1.8 (by KIE) | Nearly doubles salary/pension |
Real Pay Hike (Post-Inflation) | ~13% (by KIE) | Slightly lower than 7th CPC’s ~14% |
Source: KIE report, our analysis
Please note that the above timelines are based on a hypothetical situation. The actual timeline may be more or less, depending on a lot of factors. Although the 8th implementation may be delayed, employees and pensioners can expect arrears of pension and salary effective from January 1, 2026.
The Government has not confirmed any timeline for the implementation of the 8th CPC. Till now, it has only maintained that the new pay commission is in process.
As far as the current status of the new pay commission is concerned, the government is yet to declare the members and chairman of the 8th CPC. The notification of its Terms of Reference is also delayed.
Related News
By signing up you agree to Upstox’s Terms & Conditions
About The Author
By signing up you agree to Upstox’s Terms & Conditions