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The Finance Ministry has given important information about the 8th Central Pay Commission (8th CPC), confirming that it will impact 50.14 lakh central government employees and about 69 lakh pensioners, making a total of about 1.19 crore beneficiaries. This large group – which includes civil, defense and postal services – is awaiting changes in the pay matrix, allowances and pensions, which could lead to an increase in consumption and financial spending.

Minister of State for Finance Pankaj Chaudhary answered questions from MPs in the Lok Sabha amid the debates of the winter session on December 8, 2025. Responding to concerns raised by NK Premachandran, Thiru Thanga Tamilselvan, P Ganapathy Rajkumar and Dharmendra Yadav over progress, timelines and funding, Choudhary confirmed: “The constitution of the 8th CPC has already taken place. The terms and conditions (ToR) were notified through a Finance Ministry resolution on November 3, 2025.”

The ToR, which was approved by the Cabinet on October 28, 2025 and gazetted on November 3, mandates a comprehensive review of remuneration structures taking into account financial prudence and economic conditions. Under the chairmanship of Justice Ranjana Prakash Desai, Prof. With Pulak Ghosh (part-time member) and Pankaj Jain (member-secretary), the panel must submit recommendations within 18 months – with a target of May 2027. Interim reports may come earlier if necessary.

There is no firm date of implementation – previous commissions took an average of 21-27 months from formation, with an effective date of January 1, 2028. Chaudhary clarified: Budgetary provisions for 2026-27 will be decided after approval, with no interim relief or DA-DR merger being considered. Unions like NC-JCM are pressing for restoration of the old pension scheme and 20% interim hike, but there is silence on this. #### Lives of 1.19 crore people at stake
According to experts, this change – which is estimated to increase by 30–34% through a fitment factor of 2.28–2.86 – could add ₹2.5–3 lakh crore to annual expenditure. For employees (average basic ₹50,000+), this means increased salary; Pensioners (at least ₹9,000) are expecting a similar increase. Amid 58% DA (applicable from October 2025), expectations are rising – but delays risk demoralizing.

The 8th CPC plan promises parity, but implementing it will test financial resolve. More than 10 million people are watching as the conversation unfolds: Will this change in 2027?