8th Pay Commission to Begin Work in April FY2026, Says Expenditure Secretary

The 8th Pay Commission is expected to begin its work in April of the financial year 2025-26, according to Expenditure Secretary Manoj Govil.  Govil stated that the commission’s terms of reference (ToR) will need approval from the Union Cabinet before proceeding.

No Immediate Financial Impact Expected

Govil clarified that the government does not anticipate any financial impact from the 8th Pay Commission during FY2026. However, key ministries will seek views, including the Department of Personnel & Training and the Ministry of Defence. The financial impact of the revised pay structure will be included in the Union Budget for FY2026-27.

What is the 8th Pay Commission?

The central government sets up the Pay Commission to review and revise government employees’ and retirees’ salaries, pensions, and allowances. This revision aims to adjust salaries in line with inflation and ensure fair compensation.

Expected Salary and Pension Hikes

Although the government has not specified the exact salary hike percentage, reports suggest that the minimum basic salary could increase from ₹18,000 to ₹51,480. Nearly 50 lakh central government employees, including defence personnel, and around 65 lakh pensioners, including retired defence staff, are expected to benefit from these revisions.

A Decade-Long Tradition

Since 1946, the government has formed a new Pay Commission approximately every 10 years to review and adjust salaries. The 8th Pay Commission will continue this practice, ensuring periodic revisions in government pay structures.

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