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Millions of central government employees are eagerly awaiting the announcement of the 8th Pay Commission. Numerous speculations are swirling regarding the 8th Pay Commission. Last week, the Union Cabinet meeting announced an increase in dearness allowance (DA) and dearness relief (DR), but no update was provided on the 8th Pay Commission. Suspense remains over the commission's formation. According to sources, if the process is completed on time, the new salary could be implemented from July 2027, and employees could also receive 18 months' arrears.

Lack of approval of the ToR is a major reason.
In January 2025, the Cabinet approved the formation of this commission, but it has not yet been formally notified. The reason is the lack of approval of the Terms of Reference (ToR). This ToR will determine the commission's working framework. The government sought input from the National Council-Joint Consultative Machinery (NC-JCM) in January, which submitted its recommendations in January. The NC-JCM is the apex forum of central employees.

What is the NC-JCM's opinion?
The organization's general secretary, Shiv Gopal Mishra, told NDTV Profit in August that he hoped the ToR would be approved soon. It's believed an announcement could be made before Diwali, although no formal announcement has been made by the government yet.

Is a salary hike possible by July 2027?
Regarding past commissions, any pay commission takes 18 to 24 months to prepare its report. After the report is prepared, the government conducts a review period of 3 to 9 months. The 7th Pay Commission was formed in February 2014 and submitted its report in November 2015. Even if this timeframe is used as an example, the 8th Commission, despite being formed this year, will not be able to submit its report before April 2027. However, this time the process may be a little faster, and the report could be released by the end of 2026 or early 2027.

Will employees receive 18 months' arrears?
According to NC-JCM leaders, regardless of when the commission is implemented, its effect should be considered from January 1, 2026. This means that if the report is implemented in July 2027, employees could receive 18 months' arrears. If this happens, the best-case scenario is considered to be '18 months' arrears + salary increase from July 2027'.

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