On 8th pay panel, govt shares key details in Parliament: When will it take effect, and more

The Minister of State for Finance, Pankaj Chaudhary, delivered a written reply to a question in the Lok Sabha during the ongoing winter session that is to conclude on December 19.

When did 8th CPC work start?

Chaudhary confirmed that the commission has been formally constituted, and its Terms of Reference (ToR) were notified on November 3, 2025, via a resolution from the Ministry of Finance. As to how many people will be covered, the 8th CPC is set to cover a vast population of public servants and retirees. According to the reply placed before Parliament, over 50.14 lakh central government employees and approximately 69 lakh pensioners will be under the commission’s purview.

When will 8th CPC salaries take effect?

Regarding the crucial question of when new salaries and benefits will take effect, the minister said the implementation date of the 8th CPC “shall be decided by the government”. However, the commission is mandated to submit its recommendations within 18 months of its constitution date. That means till the middle of 2027. The government also assured that appropriate funds would be provisioned for implementing the accepted recommendations once they are finalised.

The effect of the 8th CPC recommendations is generally expected to be from January 1, 2026, following the trend established by previous pay commissions. This means whatever revision takes place, even if after January 2026, the revised pay will be calculated with effect from January 2026, thus relevant arreas would be paid when it is implemented.

Historically, the government has taken several months, or even years, between the due date and the actual rollout. For instance, the 7th CPC recommendations were implemented within six months of the due date, while others took longer.

Who will be covered by 8th CPC?

The minister’s reply in Parliament elaborated on the mandate outlined in the notified ToR for the 8th CPC. These include central government employees (both industrial and non-industrial), personnel belonging to the all-India services and defence forces, employees of Union Territories, and other such.

Likely salary increases

Based on current proposals and trends, the 8th CPC is expected to bring substantial changes to the emolument structure — likely 20–25 per cent. Earlier proposals suggest a major hike in minimum basic pay, potentially reaching ₹34,500– ₹41,000 per month. When the new pay commission is implemented, the existing Dearness Allowance (DA) is typically reset to zero. The government has, however, clarified that there is currently no proposal under consideration to permanently merge the existing DA with the basic pay. A higher basic pay usually means higher related benefits.