Overview of 8th CPC

 

Central government in sets up Pay Commission at regular intervals of 10 years to provide recommendations regarding the changes in salary, allowances and pension structure of government employees. The exercise is conducted after every 10 years and recommendations are made taking into account multiple factors such as inflation, cost of living, economic situation. Last pay commission, 7th CPC was set up in February 2014 and its recommendations were implemented w.e.f. January 2016.


Although it was widely speculated that Government of India will announce the setting up of 8th Central Pay Commission (8th CPC) in Budget 2024-25, it was not announced in the budget. However, it is widely expected that it will be set up soon and its recommendations on revising salaries and pension will be implemented on time, i.e. from January 2026. Giving an indication on the same, Finance Secretary, TV Somanathan mentioned in an interview dated 25th July 2024 that there is still time left to announce next pay commission.

 

The Centre has received proposal to immediately constitute the Eighth Pay Commission to revise the basic pay, allowances, pension and other benefits of the central government employees and pensioners. In a letter addressed to the Cabinet Secretary, Government of India, Shiv Gopal Mishra, Secretary, National Council (staff side, Joint Consultive Machinery for central government employees), pointed out why the central government should form the 8th Pay Commission on priority.

 

Typically, Pay Commission takes around 18 months to submit is findings and final recommendations. Therefore, to implement 8th CPC on January 1, 2026, the Pay Commission can be set up soon. This is expected to benefit almost 50 lakh Central government employees and 70 lakh pensioners.

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