Cabinet Approves 8th Pay Commission; Central Employees May Have to Wait Up to Three Years for Benefits

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New Delhi, October 31, 2025: The Central Cabinet has officially approved the formation of the 8th Pay Commission, paving the way for a potential salary revision for millions of Central Government employees and pensioners. However, reports suggest that the implementation of the new pay structure may take up to three years.

The government has approved the Terms of Reference (ToR) for the new pay panel, which will function under the chairmanship of Justice Ranjan Prakash Desai. The panel has been given 18 months to complete its review and submit the final report, which is expected to be presented to the government by April 2027.

According to The Financial Express, employees eager for an early implementation may need to remain patient, as past experiences indicate that the process could extend until 2028.

Timeline and Delays

The 8th Pay Commission was announced on January 16, 2025, but the approval of its ToR took over nine months and was finalized only on October 28, 2025. Based on previous trends, the interval between ToR approval and the implementation of recommendations has ranged from 22 to 28 months. Therefore, the final approval from the Cabinet and implementation of revised pay scales may realistically occur by late 2027 or early 2028.

Once implemented, the 8th Pay Commission is expected to enhance the basic pay, allowances, and pensions of Central Government employees, significantly improving their financial stability and standard of living.