In a significant development for nearly one crore Central Government employees and pensioners, the Union Ministry of Finance has officially confirmed the constitution of the 8th Central Pay Commission (8th CPC).

 The clarification came through a written reply to an unstarred question in the Lok Sabha on December 1, 2025, addressed by Minister of State for Finance Pankaj Chaudhary.

Responding to a query raised by MP Anand Bhadauria, the Minister stated that the government has indeed issued a formal resolution for setting up the 8th Central Pay Commission. The resolution was notified on November 3, 2025, and a copy of the notification has been annexed to the Parliament reply. 

This marks the first official confirmation from the government after months of speculation over whether a new Pay Commission would be formed ahead of the next wage revision cycle.

The constitution of the 8th CPC sets in motion the process of reviewing salary structures, allowances, and pension revisions for Central Government employees. The Pay Commission system, which has historically revised pay scales every 10 years, is expected to recommend changes that could directly impact government expenditure as well as the disposable incomes of millions of families.

However, the government made it clear that there is no proposal under consideration to merge the existing Dearness Allowance (DA)/Dearness Relief (DR) with basic pay as an immediate relief measure. The MP had asked whether such a merger was being contemplated in light of unprecedented inflation over the past 30 years, and the perceived inadequacy of DA/DR to keep pace with real-time retail inflation.

Dismissing any such consideration, the Minister highlighted that DA and DR are already revised every six months based on the All India Consumer Price Index for Industrial Workers (AICPI-IW) released by the Labour Bureau. This mechanism, he said, ensures that wages and pensions are appropriately adjusted for inflation to protect government employees and pensioners from erosion in real earnings.

The clarification is expected to bring both relief and anticipation among employees, who have been awaiting formal initiation of the next pay revision process. The 8th CPC’s recommendations—once completed and approved—will shape salary structures for the next decade.

The government has not yet indicated the timeframe for the Commission’s report or its expected date of implementation. However, traditionally, Pay Commission recommendations take a few years to finalize, followed by cabinet approval.

With the formal process now underway, all eyes will be on the Terms of Reference (ToR) of the 8th CPC and the broader fiscal implications of the upcoming pay overhaul.

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