8th Pay Commission Latest Update Today: After many deliberations, the Centre broke silence and spoke about the latest on 8th Pay Commission’s terms of reference.
In a reply to the question by a Rajya Sabha member, MoS (Finance) Pankaj Chaudhary told the Upper House last week that the Centre has indeed received the suggestions and recommendations on Terms of reference for the CPC by the staff side of NC-JCM.
While the minister didn’t elaborate on the timeline of when the 8th Pay Commission will be implemented, a report by Kotak Institutional Equities made the forecast on Monday.
The Central Pay Commission is likely to be rolled out sometime later in 2026 or early phase of 2027, the Business Today report said citing Kotak forecast.
The forecast aligns with the rollouts of previous pay commission. If one looks at the past records, it has taken somewhere around 1.5 years for a pay commission to be implemented from the date of announcement.
8th Pay Commission: No formal notification so far
Since Prime Minister Narendra Modi's announcement on January 16 earlier this year, there has been little movement regarding the constitution of the Central Pay Commission. However, the July 23 reply by the Finance Ministry shows that there has been some momentum. Stakeholders such as various ministries—from Defence to Home—and state governments have been consulted regarding the terms of reference.
8th Pay Commission: What Kotak says on pay hike
The Business Today report citing Kotak Institutional Equities data says that the 8th Pay Commission is likely to offer a minimum pay hike to around Rs 30,000 from current from Rs 18,000. The Kotak report further says that the CPC may consider the fitment factor of 1.8. This means that the real pay hike will be somewhere around 13%, the report added. The Kotak report also says that fiscal impact of the 8th Pay Commission on the national exchequer is likely to be around 0.8% of the GDP. This translates to an additional outlay anywhere between Rs 2.4 and Rs 3.2 lakh crore.
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