In a major letdown for over 1 crore central government employees and pensioners, the Union Finance Ministry has confirmed that no proposal is under consideration for setting up the 8th Pay Commission.

Responding to a question in the Rajya Sabha, Pankaj Chaudhary, Minister of State in the Ministry of Finance, categorically said that there is currently no proposal under consideration for the formation of th 8th Central Pay Commission.

The query raised by parliamentarians Javed Ali Khan and Ramji Lal Suman sought clarity on whether the Centre was considering any announcement regarding the new pay commission in the Union Budget 2025-26, likely to be presented on February 1, 2025.

The question also touched upon whether the union government’s fiscal condition was a constraint in revising pay scales. However, since no proposal is currently under consideration, the Minister clarified that this issue does not arise.

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Major disappointments for central govt employees and pensioners

This development will surprise and at the same time disappoint around 50 lakh serving central government staff and around 67 lakh pensioners, who were expecting the Modi government to come out with some favourable news for them in the upcoming Budget.

There were widespread expectations of an announcement regarding the setting up of the 8th Pay Commission in the February Budget, with the assumption that its recommendations would be implemented from January 1, 2026. Historically, the Centre has established a new pay commission every 10 years. If the 7th Pay Commission follows the same timeline, its term will end on December 31, 2025.

What lies ahead for central govt employees and pensioners?

Although the finance ministry has clarified that no proposal is currently under consideration to set up a new pay commission, central government employees and retirees should not lose hope, as there is still time until the assumed end of the 7th Pay Commission’s term in December 2025.

In July this year, after the Union Budget 2024-25, the then Union Finance Secretary, T.V. Somanathan, in a post-Budget interview, was asked about the formation of the 8th Pay Commission. He stated that there is enough time for a new pay commission, as the next one is due in 2026, and we are still in 2024.