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The central government has finally given great news to more than 1.2 crore employees and pensioners. Yes, the Terms of Reference (ToR) of the 8th Central Pay Commission has been approved.

This step has been taken after a long wait of about 10 months. The command of this commission will be in the hands of former Supreme Court judge Justice Ranjana Prakash Desai. The panel will have two more members and it has to prepare a report within 18 months and submit it to the government. Meaning, the commission can present its recommendations by April 2027.

The difference between expectations and reality of employees

Government employees are hoping for an early salary hike, but past experiences tell a different story. It may take till 2028 for the recommendations of the 8th Pay Commission to be implemented. If we look at the last two commissions (6th and 7th), it took 22 to 28 months from formation to implementation.

Timeline of 6th Pay Commission

The formation was announced in July 2006 (during the time of UPA-1 government). ToR approval was received in October 2006. The report was submitted in March 2008 (after 18 months). Cabinet approved in August 2008. In total it took about 22 months. The recommendations came into effect from 1 January 2006.

Timeline of 7th Pay Commission

The formation was announced in September 2013 (UPA-2). ToR approved in February 2014. Report submitted in November 2015 (after 18 months). Approval received in June 2016 (NDA government). Total duration approximately 28 months. The recommendations came into effect from 1 January 2016.

Based on both of these, it takes 2 to 2.5 years from ToR approval to salary revision.

Possible deadline of 8th Pay Commission

The 8th Commission was announced on 16 January 2025, but the ToR was approved on 28 October 2025. Now the report will come in 18 months, i.e. by April 2027. Then government review and cabinet approval will take time, due to which the actual salary increase could happen in the early months of 2028.

What does the Commission have to do?

As per the approved ToR, the 8th Commission will focus on these issues – Review and changes in the pay structure of central employees. Improvement in pension and retirement benefits. Pay equality and rationalization of structure. Improvement in allowances and service conditions. Comparison of working conditions with PSUs and private sector. Fiscal impact of recommendations and impact on economic balance. Many states follow the Centre’s framework, their impact should also be seen.

Who will benefit most?

These recommendations will directly affect more than 1.2 crore central employees and pensioners. Staff of autonomous bodies and statutory organizations who follow the Centre’s pay scale will also get benefits. State governments will later implement their own version, which will indirectly benefit millions more employees. Now that the ToR has been approved, the Commission will formally start the work. In the next 18 months, a report will be prepared after consultation with ministries, employee unions and experts.