Government Announces in Lok Sabha the Constitution of 8th Central Pay Commission

The Government of India has officially announced the constitution of the 8th Central Pay Commission (CPC) to revise the salaries and pensions of Central Government employees and pensioners. This was confirmed in the Lok Sabha in response to a starred question posed by Members of Parliament Ms. Kangna Ranaut and Smt. Sajda Ahmed.

Key Highlights from the Government’s Response

1. Formation of the 8th CPC
   The Finance Minister, Smt. Nirmala Sitharaman, confirmed that the 8th CPC will be constituted. However, details regarding its terms of reference (ToR), composition, and timeline for submission of its recommendations are yet to be finalized.
2. Scope and Beneficiaries
   According to government data:
   • 36.57 lakh Central Government civilian employees (as of March 1, 2025)
   • 33.91 lakh pensioners/family pensioners (as of December 31, 2024)
   • Additionally, personnel from the Defence Services will also benefit from the pay revisions.
3. Economic and Financial Implications
   • The economic impact of the 8th CPC is expected to be significant, leading to increased consumption and economic growth across the country, including states like Odisha.
   • The financial burden on the government due to revised salaries and pensions will be assessed only after the recommendations of the commission are submitted and accepted.
4. Stakeholder Consultations Underway
   • The government has sought inputs from key stakeholders, including:
     • Ministry of Defence
     • Ministry of Home Affairs
     • Department of Personnel & Training (DoPT)
     • State Governments
   • These inputs will help define the Terms of Reference (ToR) for the 8th CPC.

What’s Next?

The formation of the 8th CPC marks a crucial step toward salary and pension revisions for government employees. However, the final recommendations, financial implications, and implementation timeline will be determined only after the commission completes its assessment and submits its report.

Government employees and pensioners are now eagerly awaiting further announcements, particularly regarding the timeline for implementation and the expected salary and pension hikes under the 8th CPC.

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