8th pay commission: The Union Cabinet approved the 8th Pay Commission on 16 January to amend the salaries and other allowances of the central government employees. Due to this, along with the salary of central government employees, pension of pensioners is also set to change. This step will benefit about 50 lakh employees of the central government and about 65 lakh pensioners. But the budget of FY 2025-26 has not included any expenses incurred from implementing the recommendations of the 8th Pay Commission.
The reason for this is that the pay panel may take another year to present its report and then approve it. Expert secretary Manoj Govil recently said this in an interview with Moneycontrol. The Finance Ministry has written a letter to the Ministry of Defense and Home Affairs as well as the Department of Personnel and Training to suggest Terms of Reference for the 8th Pay Commission. The Center will approve them on receiving these suggestions. Govil said that the Commission will start working after the Terms of Reference is approved.
Maybe not even a year
According to Govil, “The previous commissions have taken more than a year to present the report. If the Commission is formed in March 2025, the report should come by March 2026. It may be less than a year. If I come to the FY 2026, we do not see any effect of the 8th Pay Commission. “
The 7th Pay Commission was formed in 2014 and its recommendations came into force from January 1, 2016. Its duration is ending in 2026. The Chairman and two Commission members for the 8th Pay Commission are to be appointed soon. Usually every 10 years the central government forms a pay commission to change the salary of its employees. State governments also change the salary of their employees on the lines of the Central Pay Commission.
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Commission will have to decide on additional cost
Asked if the government had any initial estimate of the additional cost after the implementation of the 8th Pay Commission, Govil said that the Commission will have to take a decision on this keeping in mind the circumstances facing it. Govil said, “We have some information about the cost under the 7th Pay Commission, but each Commission is different, the circumstances that come before them are different. So this commission will have to decide. But its budget of financial year 2026 But it is not expected to be affected, because the budget period will probably be over even when the report arrives as soon as possible. “
Further, “Even though the Commission’s recommendation is accepted in FY 2027, some recommendations may be implemented for three months from January 1, 2026, which will be left in FY 2026. But since they arrears Will be, so the expenditure will be rolled out for FY 2026-27. “