The topic of the 8th Central Pay Commission has generated heated discussions among central government employees and pensioners. The 7th Pay Commission is to be completed in 2026, and the government has started steps toward introducing the 8th CPC, which would benefit about 50 lakh central government employees and 65 lakh pensioners. But the burning question in everyone’s mind is: Do the recommendations of the 8th Pay Commission add a burden to the government finances?
Let us analyze the issue further and look for the answer in the statement given by Finance Minister Nirmala Sitharaman.
What is the 8th Pay Commission?
The 8th Central Pay Commission, as it concerns the next proposed revision of the salaries and pensions of central government employees and pensioners, will be one step further in this direction. On January 16, 2025, the Union Cabinet approved the setting up of the 8th CPC, and its coming into force shall bring about a substantial change in the financial environment of government employees. The specific recommendations of the Pay Commission are yet to be finalized, and this whole process is expected to last for about the next year from the time of submission to the time of ratification of the report.
The 7th Pay Commission, which came into effect in 2016, is scheduled to come to an end in 2026. It has been the tradition that every ten years, a new Pay Commission is set up by the central government to evaluate the salaries and pensions of its employees. Oftentimes, state governments follow suit and apply similar recommendations to their own pay structures.
Will the 8th Pay Commission Add Any Financial Burden to the Government?
This question was raised by many stakeholders, including Kangana Ranaut and Sajda Ahmed, Members of Parliament in the Lok Sabha; they asked Finance Minister Nirmala Sitharaman for clarification on whether any recommendations made by the 8th CPC would add to the financial burden of the government. The MPs also inquired about the estimated number of employees or pensioners who would benefit from the proposed new pay structure and whether the government researched to assess the recommendations on the impact on fiscal policies and expenditures.
Finance Minister Nirmala Sitharaman’s Response
In her reply, Finance Minister Nirmala Sitharaman provided some key insights:
- The estimated number of central government civilian employees is 36.57 lakh as of March 1, 2025.
- The estimated number of pensioners and family pensioners is 33.91 lakh as of December 31, 2024.
- Defense personnel and pensioners will also be included in the benefits of the 8th CPC.
She emphasized that the financial impact of the 8th CPC recommendations can only be assessed once the commission submits its report and the government accepts its proposals. Inputs have been sought from key stakeholders, including the Ministry of Defence, Ministry of Home Affairs, Department of Personnel and Training, and various state governments.