8th pay commission: Govt shares major update in Lok Sabha after ToR notification; what’s next for employees and pensioners
More than 50.14 lakh Central government employees and around 69 lakh pensioners are set to be covered under the 8th Central Pay Commission (CPC), with the government saying the timing of implementation and funding will be decided later.The update was shared in the Lok Sabha on Monday in a written reply by Minister of State for Finance Pankaj Chaudhary, amid questions on when the new pay panel’s recommendations would take effect and how many beneficiaries would be covered.
8th Pay Commission constituted, ToR notified on November 3
Responding to a starred question on the implementation of the 8th Pay Commission, the minister said the commission has already been constituted and its Terms of Reference (ToR) were notified on November 3, 2025, through a resolution of the Ministry of Finance.He told the House that the date of implementation of the 8th CPC “shall be decided by the government”, adding that appropriate provision of funds would be made for implementing the accepted recommendations once they are finalised.
Who will benefit from the 8th CPC
According to the reply placed before Parliament, the number of Central government employees stands at 50.14 lakh, while the number of pensioners is about 69 lakh.These beneficiaries span a wide range of services and institutions, as outlined in the notified ToR of the commission.
What the 8th Pay Commission will examine
As per the government resolution, the 8th CPC will examine and recommend changes in pay, allowances, pensions, gratuity, bonuses and other emoluments, in cash or kind, for the following categories:
Focus on fiscal prudence and pension costs
The commission has been tasked with framing recommendations while keeping in view:
- The economic conditions of the country
- The need for fiscal prudence
- Availability of resources for developmental and welfare expenditure
- The unfunded cost of non-contributory pension schemes
- The likely impact of the recommendations on State government finances, which generally adopt CPC recommendations with modifications
- Prevailing pay and benefits in central PSUs and the private sector
It will also review Death-cum-Retirement Gratuity and pension structures, including those under the National Pension System and Unified Pension Scheme.
Consultation process and methodology
On whether stakeholders were being consulted, the government told Lok Sabha that the 8th Central Pay Commission will devise its own methodology and procedure for formulating recommendations.The commission has been empowered to appoint advisors, institutional consultants and experts, and to seek information and evidence from ministries, departments and other stakeholders.
Who will head the 8th Pay Commission
As notified earlier, the 8th CPC comprises:
When will new salaries kick in
As specified in the November 3, 2025 resolution, the 8th Central Pay Commission will submit its recommendations within 18 months of the date of its constitution.It may also submit interim reports, if required, once recommendations on specific matters are finalised.The government reiterated that decisions on implementation timelines, budgetary allocation and rollout will be taken after examining the commission’s recommendations.
