8th Pay Commission: Govt Undecided on Implementation Date, Funding

• The 8th Central Pay Commission (CPC) has been constituted, and its Terms of Reference (ToR) were notified on November 3, 2025.
• Minister of State for Finance Pankaj Chaudhary stated that the timing and funding for the 8th CPC's implementation will be decided later by the government.
• The 8th CPC is expected to submit its recommendations on salaries, pensions, and fitment factor within 18 months of its constitution.
• There is currently no proposal to merge the existing dearness allowance (DA) or dearness relief (DR) with basic pay.
• The 8th CPC is projected to impact over 5 million central government employees and 6.5 million pensioners, with potential salary increases based on a fitment factor between 1.83 and 2.46.

Why It Matters: This impacts future earnings for millions of government employees and pensioners.