8th Pay Commission: Why central govt employees shouldn’t expect revised salary in January 2026

Central government employees hoping for a salary hike from January 1, 2026, under the 8th Central Pay Commission (CPC) may have to temper expectations, as official timelines and recent statements indicate that implementation of the new pay structure is unlikely to begin by then.

The government announced the formation of the 8th CPC in January 2025, ahead of the Union Budget.

However, the Commission’s constitution is still in progress, with the appointment of a chairman, two members, and a secretary-level bureaucrat yet to be finalised.

Replying to a question in Lok Sabha last month, Finance Minister Nirmala Sitharaman confirmed the decision to constitute the 8th CPC but noted that details, including the terms of reference (ToR) and timeline for the report’s submission, would be decided later.

The ToR will outline the Commission’s scope, including revisions to pay structures, allowances, and benefits for central government employees and pensioners.

The process of finalising pay commission recommendations typically involves extensive consultations with stakeholders such as employee unions, pensioners’ groups, and ministries including Defence, Home Affairs, and Personnel & Training.

Officials have indicated that the report is unlikely to be ready before early 2026.

The 7th Pay Commission, currently in effect, is set to end in 2026. Traditionally, pay commissions are constituted once every decade to review and revise the salary structure of government staff.

Expenditure Secretary Manoj Govil, in an interview with Moneycontrol, had said the panel may take up to a year to finalise its recommendations.

As a result, the Union Budget for FY26 has not allocated any funds for the implementation of revised pay structures.

“Previous commissions have taken more than one year to present the report. If the Commission is set up even in March 2025, the report should come in by March 2026, though it could take less than a year. So, for FY26 we don’t see any impact of the 8th Pay Commission,” Moneycontrol quoted Govil as saying.