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  1. 8th Pay Commission salary hike may follow a new methodology: What the government is hinting at

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8th Pay Commission salary hike may follow a new methodology: What the government is hinting at

Upstox

2 min read | Updated on December 11, 2025, 20:05 IST

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SUMMARY

8th Pay Commission news: All pay commissions in the past have revamped or revised the methodology adopted by their predecessors. For instance, the 7th Pay Commission reviewed and rationalised the entire structure of allowances. It also replaced pay bands with pay matrix.

8th pay commission news

It won't be a surprise if the 8th Pay Commission also follows the past trend. | Image source: Shutterstock

Even as the 8th Central Pay Commission (CPC) has just begun its work, there has already been a lot of speculation on social media about the size of the hike and the manner in which such raises may be announced by the new panel. However, all such speculations are likely to be proven false as the government has hinted that the 8th Pay Commission will devise its own methodology and procedure to formulate recommendations.

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Replying to a query in the Lok Sabha on December 8, 2025, Union Minister of State for Finance, Pankaj Chaudhary, hinted at the possibility of the new methodology, saying, "The 8th Central Pay Commission will devise methodology and procedure for formulating its recommendations."

Chaudhary's reply came on a query on "whether the Government proposes to consider the grievances of employees and pensioners due to delay in starting the functioning of 8th Pay Commission, if so, the details thereof; and."

Since the notification of the Terms of Reference of the 8th Pay Commission, several employees' and pensioners' bodies have made demands like immediate relief in the form of DA-Basic Pay merger, [specific mention of 8th CPC for pensioners](8th Pay Commission pension formula: Why senior citizens want uniform fitment factor and revision), timely implementation of the recommendations with effect from January 1, 2026, and much more.

However, the MOS Finance's statement in the Lok Sabha means all such issues will be answered only by the 8th Pay Commission, which is likely to take up to 18 months to submit its recommendations.

Why is this not surprising?

All pay commissions in the past have revamped or revised the methodology adopted by their predecessors. For instance, the 7th Pay Commission reviewed and rationalised the entire structure of allowances. It also replaced the concept of running pay bands coupled with grade pay with a pay matrix. So, it won't be a surprise if the 8th Pay Commission also follows the past trend and changes the methodology and procedures adopted by the 7th Pay Commission.

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About The Author

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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