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  1. 8th Pay Commission to be set up in November 1st week? Here's what a report says

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8th Pay Commission to be set up in November 1st week? Here's what a report says

Upstox

3 min read | Updated on October 28, 2025, 16:05 IST

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SUMMARY

8th Pay Commission: As per the report, the new pay panel is expected to take 6-12 months to submit its recommendations to the government.

8th pay commission

The 8th Pay Commission’s recommendations are expected to come into effect from January 1, 2026. | Image: Shutterstock

The Union Cabinet, chaired by Prime Minister Narendra Modi, on Tuesday ( 27 October) approved the Terms of Reference of 8th Central Pay Commission.
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The 8th Central Pay Commission will be a temporary body. The Commission will comprise of one Chairperson; One Member (Part Time) and one Member-Secretary. It will make its recommendations within 18 months of the date of its constitution. It may consider, if necessary, sending interim reports on any of the matters as and when the recommendations are finalised

Earlier, Financial Express reported the Central Government is reportedly set to constitute the 8th Pay Commission next week, almost ten months after Cabinet approval, just ahead of the Bihar assembly elections.

Central government employees have been awaiting updates on the terms of reference and member appointments for the 8th Central Pay Commission (CPC).

As per the report, the new pay panel is expected to take 6-12 months to submit its recommendations to the government, affecting the salaries, allowances, and pensions of millions of central government employees.

8th Pay Commission: Timeline and background

The decision to establish the 8th Central Pay Commission (CPC) was initially approved by the Cabinet in January 2025.

PM Modi also highlighted the move on X, stating that the Commission will “improve quality of life and give a boost to consumption.”

What is the 8th Pay Commission and why it matters

The 8th Pay Commission is a government-appointed panel that reviews current salaries, allowances, and benefits of central employees. Its recommendations aim to help employees and pensioners cope with rising living costs and economic changes.

Applicability to pensioners

The 8th Pay Commission will cover Central Government pensioners. However, its recommendations are not yet in effect as the panel has not been formally notified or set up.

Who will benefit from the 8th Pay Commission?

The new pay panel will impact all central government employees and pensioners, including defence personnel, PSU employees, and All India Service officers. Currently, these groups are governed by the 7th Pay Commission.

Expected implementation date

A review of the history of Pay Commissions shows that there is typically a gap of 1.5 to 2 years between the announcement of a commission and the final acceptance of its recommendations.

The positive news for employees and pensioners is that, historically, the implementation of pay commissions has followed a 10-year cycle from the effective date of the previous commission.

For instance, the 4th CPC was implemented from January 1, 1986, the 5th CPC from January 1, 1996, the 6th CPC from January 1, 2006, and the 7th CPC was implemented from January 1, 2016.

The 8th Pay Commission’s recommendations are expected to come into effect from January 1, 2026, marking a significant update for millions of government employees and retirees.
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Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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