Big Announcement! Speculation Ends on 8th Pay Commission, When Will New Salary Structure Be Effective? Center Clarifies
With 2025 drawing to a close, millions of central government employees are eagerly awaiting the 8th Pay Commission in the new year. There was prolonged speculation regarding the formation and implementation of this commission, which the Central Government has now addressed.
A Pay Commission is constituted every ten years, and it is the turn of the 8th Pay Commission in 2026. This move is aimed at increasing employee salaries in line with current inflation. While the timeline for the commission’s formation was under debate, Minister of State for Finance, Pankaj Chaudhary, has provided the latest details.
When Will It Be Effective?
Minister of State for Finance Pankaj Chaudhary stated, “The Eighth Central Pay Commission has already been constituted. The ToR (Terms of Reference) of the Eighth Central Pay Commission has been notified through the Resolution of the Ministry of Finance dated November 3, 2025.”
Retired Supreme Court Justice Ranjana Prakash Desai has been appointed to the commission. The Minister further mentioned, “As stated in the notified proposal dated November 3, 2025, the Eighth Central Pay Commission will submit its recommendations within 18 months from the date of its constitution.”
This means the commission will have 18 months to submit its final report, along with an interim report. While many anticipated that increased salaries and pensions would begin flowing to employees from January 1, 2026, the Minister’s statement suggests a slight delay in implementation. However, it is confirmed that whenever the commission submits its final report, it will be effective retrospectively from January 1, 2026. This is undoubtedly a major relief for crores of central employees and pensioners.
