8th Pay Commission Likely to Begin Work from April 2025: Expenditure Secretary

India’s Expenditure Secretary, Manoj Govil, announced on February 10 that the much-anticipated 8th Pay Commission is expected to begin its work from April in the financial year 2025-26. This commission is tasked with reviewing and revising the salaries, allowances, and pensions of central government employees and retirees, a process that will have a significant impact on millions of public servants.

CNBC-TV18 reports that Govil clarified that though the ToR for the commission has to be cleared by the Union Cabinet, the government does not expect the financial impact of the 8th Pay Commission to be felt in the fiscal year 2025-26. The Expenditure Secretary added that the government will seek inputs from key stakeholders, including the Ministry of Personnel & Training and the Ministry of Defence.

Govil further highlighted that the financial implications of the Pay Commission would be accounted for in the Union Budget for the financial year 2026-27. One of the major impacts of the commission is expected to be on India’s Unified Pension Scheme (UPS), which covers both current employees and pensioners.

What is the 8th Pay Commission?

The 8th Pay Commission is a high-level panel set up by the Central government every decade to revise the salary structure of central government employees. The commission’s revisions are expected to include salary hikes and adjustments to the Dearness Allowance (DA) to reflect the current inflation rate in the country.

As of now, the exact percentage of salary hikes that government employees and retirees will receive remains unclear. However, sources suggest that the minimum basic salary could be raised to ₹51,480 from the current ₹18,000. The central government currently employs around 50 lakh employees, including defense personnel, who are expected to benefit from the pay revisions. Additionally, around 65 lakh central government pensioners, including defense retirees, are also anticipated to see changes in their pension structure.

Since 1946, India has established seven Pay Commissions, with the 8th one set to follow the same pattern of revising the pay and pension structure. The commission is expected to address growing concerns regarding inflation and provide adequate support to central government employees and pensioners, who form the backbone of the country’s administrative machinery.

While the financial impact of the 8th Pay Commission will not be immediate, it is expected to influence various government budgeting processes, including the allocation of funds for pension schemes and allowances. The government’s aim is to ensure that the revised pay structure keeps up with inflation, benefiting employees and pensioners alike.

With the commission set to begin its work soon, all eyes are on the forthcoming revisions that could provide a much-needed financial boost to India’s central government workforce.