The long-awaited 8th Central Pay Commission (CPC), which will determine the next set of pay, pension, and allowance modifications for more than 1.2 crore central government employees and pensioners, has not yet been formally established even though the Union Cabinet approved it earlier this year, ABP News reports. 

On January 16, 2025, the Union Cabinet of Ministers approved the establishment of the 8th Pay Commission. However, the government has yet to appoint the commission's chairperson or members.

The Terms of Reference (ToR), which define the commission's scope, including pay structures, allowances, and retirement benefits, are also still pending.

Without the ToR, the committee cannot begin its work, making an early salary revision unlikely.

Historically, Pay Commissions took two to three years from their establishment to their implementation. 

The 7th Pay Commission was announced in September 2013, and both its chairman and ToR were notified by February 2014, indicating that the 8th CPC is well behind schedule.

If the 8th CPC begins operations in early 2026, the full report may not be released until late 2026 or early 2027.

Once operational, the 8th CPC will affect the salary and benefits of around 50 lakh current central employees and 65 lakh retirees, including defence personnel and pensioners.

The commission will also adjust the Dearness Allowance (DA) based on inflation and other indicators of economic activity.

Central Pay Commissions are usually formed every ten years to assess and suggest changes to central government pay scales. The 7th Pay Commission, which was enacted in 2016, will stay in effect until 2026.