The highly awaited 8th Pay Commission (8th CPC), designed to update the pay of central government staff, has reached the stage of uncertainty with the government still not finalizing its Terms of Reference (ToR) and appointing the chairman. This 8th Pay Commission Delay has fueled increasing irritation among an estimated 1.2 crore central employees and pensioners, who have been eagerly waiting for an announcement on the new pay system scheduled to be implemented from January 1, 2026.
In the new development, the Union Government has raised Dearness Allowance (DA) and Dearness Relief (DR) by 3%, giving some temporary relief to close to 49 lakh employees and 68 lakh pensioners. Experts opine that this may be the final DA/DR hike in terms of the 7th Pay Commission, as the government is set to shift to the 8th CPC scheme. The rise is from July 2025, and the employees will notice the increased DA in their next pay period.
Even with the announcement, there is still discontent simmering, as no word on when the 8th Pay Commission would be officially formed has been heard yet. It has been reported that although the government had cleared the establishment of the commission earlier this year, the ToR and appointments were awaited, putting its operations on the backburner. Ministries, including Finance, Defence, and Home Affairs, have made informal consultations with states and other departments to outline the ambit of the commission, but no formal notice has been given as yet.
Media estimates put the fitment factor—a central multiplier that will decide salary increases—likely at 1.92 to 2.86, which could mean a 30–50% basic pay increase. For instance, someone with a basic pay of ₹18,000 may have it go up to around ₹35,000 when the 8th CPC rolls out. Experts, however, warn that with the procedural holdup, full implementation may be pushed till mid-2027, and arrears may be paid backdated from January 2026.
At the same time, some employee unions, such as postal workers and teachers, have organized protests for early implementation and inclusion of classes such as Gramin Dak Sevaks under the new pay scale. The delay has also brought back issues regarding the Old Pension Scheme (OPS), with certain groups clamoring for its revival along with salary revisions.
With ongoing consultations, government staff are expecting the Union Budget for FY 2026-27 to finally have specific provisions for the 8th Pay Commission, giving relief and much-needed clarity to millions of civil servants.
