DA Hike-The central government employees and pensioners are worried about the delay in forming the 8th Pay Commission. Even though the government has announced a hike in Dearness Allowance (DA) and Dearness Relief (DR), people are now waiting for updates on the 8th Pay Commission. Everyone is eager to know when the panel will start working.
All Eyes On 8th Pay Commission, But The Issue Is
All attention is on the government’s next step regarding the 8th Pay Commission. However, the main problem is that the chairman has not been appointed yet. The Terms of Reference (ToR), which define the commission’s working rules, are also not ready.
More than 1.2 crore central government employees and pensioners are waiting for the formation of the 8th Pay Commission. This commission will decide their new salary, pension, and benefits. Even though the government approved it on January 16, 2025, it has not been officially formed yet.
Centre Announces DA and DR Hike
Recently, the Union Cabinet approved a hike in DA and DR for government employees and pensioners. This increase will be effective from July 1, 2025. The rate has gone up by 3 percent, making it 58 percent of the Basic Pay or Pension.
This increase is meant to help employees handle the rise in prices. However, there was no announcement regarding the Terms of Reference or the appointment of commission members. Many employees are unhappy because the government has not given any clarity about the pay commission’s progress.
When Is The 8th Pay Commission Expected?
The government, led by Prime Minister Narendra Modi, approved the formation of the 8th Pay Commission in January 2025. It is expected to come into effect from January 1, 2026.
Usually, a pay commission is set up every 10 years to review and suggest changes in salaries, allowances, and pensions of government employees. The 7th Pay Commission was implemented in 2016, and it will remain in force until 2026.
The new pay panel will have a chairperson and at least two other members. However, the delay in finalizing ToR means the work of the 8th Pay Commission has not yet started.
Who Will Benefit From The 8th Pay Commission?
The 8th Pay Commission will benefit more than 1.2 crore central government employees and pensioners. This includes around 50 lakh employees and nearly 65 lakh pensioners, including defence personnel and retirees.
The commission will revise salaries, allowances, and pensions to match inflation and rising living costs. Many government workers are hoping this revision will bring better financial relief and help them cope with increasing expenses.
Why Is ToR Important?
The Terms of Reference, or ToR, are very important for any pay commission. It defines the rules, areas of review, and guidelines for the commission’s work. The ToR helps decide how salaries, allowances, and retirement benefits will be reviewed.
Without a ToR, the government cannot appoint a chairman or members. This means the commission cannot start functioning officially. The delay in ToR approval is one of the biggest reasons why the 8th Pay Commission has not moved forward yet.
7th Pay Commission vs 8th Pay Commission Delay
The 7th Pay Commission was announced in September 2013, and its ToR was finalized by February 2014. But this time, things are moving much slower. Although the 8th Pay Commission was announced in January 2025, the ToR and chairman are still pending.
Because of this delay, experts believe it may take longer than expected for the 8th Pay Commission to start its work. Reports suggest that employees might have to wait until 2028 to see full implementation.
Why Is 8th CPC Not Likely Before 2028?
Looking at past trends, it usually takes two to three years for a pay commission to complete its review and for its recommendations to be implemented. Since the 8th Pay Commission has not yet been formed, the chances of implementation before 2028 seem low.
With only a few months left in 2025, it appears that the commission might take time to begin its operations and submit its final report. Therefore, the wait for better pay and pension structures could extend for another two to three years.
Conclusion
The delay in forming the 8th Pay Commission has left many central government employees and pensioners disappointed. Even though the DA and DR hikes bring some relief, people are still waiting for solid updates about the commission’s progress. The finalization of ToR and appointment of members will mark the real beginning of this important process. Until then, patience is the only option for those waiting for better pay and benefits.