India has initiated the process for the 8th Central Pay Commission to review central government salaries and service conditions. The government finalised the terms of reference in October 2025, with recommendations due in 18 months. Revised pay scales are expected to apply from January 1, 2026, though payouts may come later. The review comes amid a shrinking workforce, rising vacancies, and close scrutiny of the government wage bill.

      BulletsIn

•  8th Pay Commission set up to revise pay, allowances, pensions.
•  Terms of reference finalised in October 2025.
•  Commission gets 18 months to submit recommendations.
•  New pay scales likely effective from January 1, 2026.
•  Full report expected only by 2027; payouts may be delayed.
•  Central government workforce declining, but sanctioned posts rising.
•  Vacancy rates increasing despite higher average salaries.
•  Pay and allowances were ₹2.75 trillion in FY23.
•  Wage bill share fell to 6.6% of total expenditure.
•  About 50 lakh employees and 60–69 lakh pensioners affected.