8th Pay Commission may begin work in April FY25-26, reveals Expenditure Secretary Manoj Govil

Expenditure Secretary Manoj Govil has revealed to CNBC-TV18 that the 8th Pay Commission will likely start their work in the month of April for FY 2025-26. The report said that the Union cabinet will have to give its nod to terms of reference (ToR). The Commission will ask Ministry of Department of Personnel & Training and the Ministry of Defence’s views on the matter. Govil also said that the 8th Pay Commission will have no financial effect on financial year 2026, according to the report<

The report further quoted Govil saying that the Union budget for next year will include funds to cover the financial impact of the 8th Pay Commission. The scheme is likely to affect India’s Unified Pension Scheme (UPS).

What is the 8th Pay Commission?

The Centre is working on setting up the 8th Pay Commission to review and update the salaries and pensions for all the central government employees and the ones who have retired. This revision will involve increase in salary, Dearness Allowance adjustments so that it matches India’s inflation rate.

However, the government has not provided specific details on the percentage of salary hikes for employees and retirees yet. A report by Business Today had said that the minimum basic salary may likely increase from Rs 18,000 to Rs 51,480.

According to a Mint report, the 8th Pay Commission is likely to benefit around 50 lakh government employees, which also includes defence personnel.

This Commission is created every 10 years to discuss and decide on the revision of salaries and pensions. The government has established 7 pay commissions since 1946 and is now working on setting up the 8th Pay Commission this year.