8th Pay Commission: 2026-27 Budget Impact Uncertain, Govt Cautious

• The 8th Central Pay Commission's (CPC) Terms of Reference were notified on November 3, 2025, raising questions about future salaries and allowances.
• Speculation about the 8th CPC's inclusion in the Union Budget 2026-27 is high, but officials suggest a cautious approach and potential delay in formal implementation due to fiscal concerns.
• Uncertainty surrounds the 8th CPC's implementation date and its impact on dearness allowance/relief, as the 7th CPC ends on December 31, 2025.
• Central government employee bodies have submitted demands, including restoring the old pension scheme, fixing minimum wages, and revising various allowances.
• The 7th CPC, implemented in 2016, increased minimum pay to Rs 18,000, raised salaries by 14.29%, and enhanced gratuity to Rs 20 lakh.

Why It Matters: This impacts central government employees' salaries and pensions.