8th Pay Commission: No Salary Hike for Government Employees This Year

The debates over the 8th Pay Commission has finally come to a pause with the Finance Ministry officially clarifying that there is currently no plan to set up the 8th Pay Commission. Minister of State for Finance, Pankaj Chaudhary, shared this update in the Rajya Sabha on December 3, 2024. 

The announcement has left over 1 crore central government employees and pensioners disappointed.  Many employees were hoping for a salary revision in the upcoming budget. Here are the details of the announcement.

Are Expectations from Budget 2025-26 Over?

The clarification came on the question raised by the MPs Javed Ali Khan and Ramji Lal Suman on the government’s plan to announce the 8th Pay Commission in the upcoming Union Budget on February 1, 2025. However, the Finance Ministry clarified that there is no such proposal, and financial constraints are not a factor in this decision.

Government Employees and Pensioners Disappointed 

This update has come as a disappointment to nearly 50 lakh central government employees and 67 lakh pensioners who were hopeful that the Modi government would announce steps toward the 8th Pay Commission in the budget. Many had expected the recommendations of the commission to be implemented starting January 1, 2026.

New Pay Commission Every 10 Years

Traditionally, the central government forms a new pay commission every 10 years. The 7th Pay Commission's recommendations came into effect on January 1, 2016, and its term will end on December 31, 2025. Based on this timeline, employees were hopeful that the process for the 8th Pay Commission would begin soon.

Employee organizations have also submitted several requests, emphasizing the need for a salary hike due to inflation and the rising cost of living.

What’s Next?

While there are no current plans to set up the 8th Pay Commission, the issue might be discussed in upcoming National Council of Joint Consultative Machinery (NC-JCM) meetings. These meetings are a key platform for addressing employee concerns, including salary-related issues.

Central government employees and pensioners are now disappointed with the lack of progress. However, discussions about the 8th Pay Commission may occur in future NC-JCM meetings.