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Millions of central government employees and pensioners across India have been eagerly waiting for clarity on the 8th Pay Commission, hoping for revisions in salaries, allowances, and pensions. Addressing these concerns, the central government has now provided a clear and detailed update in Parliament regarding the commission’s status, timeline, and scope of work.

The government has confirmed that the 8th Pay Commission has already been constituted and will submit its recommendations within a fixed timeframe. This announcement has brought much-needed clarity and reassurance to employees and retirees alike.

8th Pay Commission to Submit Report Within 18 Months

Responding to a question raised in the Rajya Sabha, the Minister of State for Finance, Pankaj Chaudhary, stated that the government officially notified the formation of the 8th Pay Commission on November 3, 2025. Along with its formation, the Terms of Reference (ToR) were also issued.

As per the notification, the Pay Commission is required to submit its recommendations within 18 months from the date of its constitution. This means the commission is working under a clearly defined deadline, and the process is moving according to schedule.

The government emphasized that the commission functions as an independent expert body and will conduct a detailed review before finalizing its report.

What Will the 8th Pay Commission Review?

The government clarified that the mandate of the 8th Pay Commission includes a comprehensive review of:

• Pay structure of central government employees

• Allowances and service-related benefits

• Pension and retirement benefits

The commission will assess existing frameworks, study economic conditions, and evaluate employee welfare before making its recommendations. Once the report is submitted, the government will examine it and take appropriate decisions on implementation.

No Discrimination Among Pensioners, Government Assures

Concerns were raised in Parliament regarding whether the Finance Bill 2025 would allow the government to differentiate pensioners based on their date of retirement. Addressing these concerns, the Finance Minister categorically denied any such move.

The government clarified that no distinction is being made among pensioners on the basis of retirement date. Pension benefits for central government employees continue to be governed by:

• Central Civil Services (Pension) Rules, 2021

• Central Civil Services (Extraordinary Pension) Rules, 2023

Additionally, pension revisions are implemented through official government orders whenever Pay Commission recommendations are approved.

No Change in Existing Pension Rules

The government further emphasized that existing civil and defense pension rules remain unchanged. The Pay Commission’s role is advisory in nature, and its recommendations do not automatically alter pension policies.

The Finance Act, 2025, particularly Part-IV, only validates current pension liabilities paid from the Consolidated Fund of India. It does not introduce any new provisions that affect existing pension structures.

Recent Developments Related to the 8th Pay Commission

Providing more updates, the government revealed that:

• Office accommodation has already been allotted to the 8th Pay Commission

• A recruitment circular was issued in January 2026 for key posts such as PSo, PPS, Sr. PPS, and PS

• Administrative groundwork for the commission is actively underway

These developments indicate that the commission has moved beyond the planning stage and is preparing for full-scale operations.

Conclusion

The government’s statement has made it clear that the 8th Pay Commission is progressing as per a defined roadmap. Its recommendations are expected within 18 months of its formation, and there is no proposal to alter existing pension rules or discriminate among pensioners.

For now, government employees and pensioners can be assured that the process is on track and any changes will be implemented only after due evaluation and approval.