7th vs 8th Pay Commission

How the 7th and 8th Central Pay Commissions compare: what the 7th CPC fixed and keeps in force, and what the 8th CPC, constituted in 2025, has yet to decide.

The 7th and 8th Central Pay Commissions are not two competing pay structures to choose between. The 7th Central Pay Commission is the pay system in force: its report built the 18-level pay matrix, set a fitment factor of 2.57 and a minimum pay of Rs. 18,000, and took effect on 1 January 2016. The 8th Central Pay Commission was constituted on 3 November 2025 to review that structure afresh, and as on 10 August 2026 it has not reported. It has fixed no fitment factor, no minimum pay, no revised matrix, and no effective date. So a comparison today is a comparison between a settled structure and an open review, and the honest columns are “in force” against “not yet decided”, not “old rate” against “new rate”.

This article sets the two Commissions side by side on the points employees actually search for: the pay structure, the fitment factor, the minimum pay, allowances and dearness allowance, pension, coverage, and timeline. Every 7th CPC figure is drawn from the Commission’s report and the notifications that implemented it. Every 8th CPC figure is labelled as decided, demanded, or projected, because treating a staff-side demand or a press projection as a government decision is the single most common error in coverage of the 8th CPC. To apply the rules that are actually in force to your own level, cell, and city, use the 7th CPC salary calculator.

The comparison at a glance

The table below sets the settled 7th CPC position against the current state of the 8th CPC. Read the 8th CPC column as a status, not a figure: where it says “not decided”, no number exists, and the demands shown are what staff federations have asked for, not what the Commission has recommended.

7th CPC (in force) and 8th CPC (under review), as on 10 August 2026
Point7th CPC8th CPC
StatusIn force since 1 January 2016Constituted 3 November 2025; not yet reported
ChairpersonJustice A. K. MathurJustice Ranjana Prakash Desai
Report submitted19 November 2015Due by 3 May 2027
Fitment factor2.57Not decided (staff-side demand 3.833)
Minimum payRs. 18,000 a monthNot decided (staff-side demand Rs. 69,000)
Pay structure18-level pay matrixTo be reviewed; matrix may be kept, redesigned, or replaced
Annual increment3%, granted as one cell down the levelNot decided (staff-side demand 6%)
House rent allowanceRecommended 24%, 16%, 8%; now 30%, 20%, 10% after the dearness-allowance escalationNot decided (staff-side demand 40%, 35%, 30%)
Transport allowanceRs. 7,200, Rs. 3,600 or Rs. 1,350 a month by level, plus dearness allowanceNot decided
Effective date1 January 2016Not notified
Employees and pensioners coveredAbout 47 lakh and 53 lakh at implementationNine categories in clause 2(a); 50.46 lakh employees and 68.27 lakh pensioners drew dearness allowance in April 2026

Status: settled against open

The clearest difference is legal standing. The 7th CPC has completed its work; the 8th CPC has barely begun.

The 7th CPC was constituted in February 2014, submitted its report on 19 November 2015, and its recommendations were accepted by the Union Cabinet and brought into force from 1 January 2016 through the Central Civil Services (Revised Pay) Rules, 2016. That structure has governed central pay for a decade.

The 8th CPC has cleared only its constitution milestones. The Union Cabinet approved it in principle on 16 January 2025, approved its terms of reference and composition on 28 October 2025, and the Department of Expenditure notified it through Resolution F. No. 01-01/2025-E.III(A) dated 3 November 2025. As on 10 August 2026 it is in its consultation phase: it met the Standing Committee of the National Council (JCM) on 28 April 2026, closed the deadline for stakeholder memoranda on 15 June 2026, and has held outstation sittings from Dehradun in April through Bhubaneswar and Kolkata in July 2026, followed by interactions at Delhi on 7 and 10 August 2026. Its portal has notified visits to Jaipur on 31 August and 1 September 2026, Chennai on 7 and 8 September, Puducherry on 9 September, and Chandigarh on 16, 17 and 18 September 2026. Its 18-month window from 3 November 2025 expires on 3 May 2027. Answering Rajya Sabha Unstarred Question No. 1036 on 28 July 2026, the Government stated that the terms of reference do not require the Commission to keep it updated on progress or on the recommendations contemplated. Nothing it will recommend is settled, and the 8th CPC guide tracks each milestone as it happens.

The practical consequence is simple: an employee’s pay slip today is built entirely on 7th CPC rules. The 8th CPC changes nothing until it reports and the government notifies revised rules.

Fitment factor: 2.57 against an open question

The fitment factor is the multiplier that converts old basic pay into new basic pay when a pay commission’s structure takes effect. The 7th CPC set it at 2.57, so a pre-revision basic pay was multiplied by 2.57 to arrive at the new basic pay before rounding into the nearest pay matrix cell. The fitment factor page sets out exactly how the 2.57 was built from a 14.29% real increase layered on the dearness allowance that had accumulated by the changeover.

The 8th CPC fitment factor does not exist. The staff side, through the National Council (JCM), demanded 3.833 in its memorandum of 14 April 2026; the 2.86 quoted everywhere as a projection is in fact an earlier verbal staff-side position, and the lower figures down to about 1.8 are analyst estimates built by multiplying the neutralisation base of 1.60 by an assumed real increase. None of these is a recommendation, and any article that states a fitment factor of 2.86 as decided is wrong. A larger fitment factor also does not translate directly into a larger take-home rise, for two reasons. First, it is applied to a base that already includes ten years of increments. Second, the dearness allowance is usually reset close to zero when a new structure begins, because the accumulated dearness allowance is folded into the revised basic pay; the 60% dearness allowance in force from 1 January 2026 would not simply be added on top of a fitment-multiplied basic. The net effect depends on the whole package, not on the headline multiplier alone.

Minimum pay: Rs. 18,000 against Rs. 69,000 demanded

The 7th CPC set the entry-level minimum pay at Rs. 18,000 a month, computed with the Aykroyd need-based formula that prices a notional family’s food, clothing, housing, and other needs. That figure anchors the bottom of the pay matrix at Level 1.

The 8th CPC minimum pay is undecided. The staff side has demanded Rs. 69,000, again derived from the Aykroyd formula but with updated prices and an expanded basket. The gap between the demand and any eventual recommendation is usually wide: the 7th CPC’s own Rs. 18,000 was well below the roughly Rs. 26,000 the staff side had sought in 2015. The minimum pay matters beyond the lowest level, because the fitment factor is derived partly from the ratio between the existing and proposed minimum pay, so the two numbers are decided together rather than in isolation.

Pay structure: the matrix the 7th CPC built

The 7th CPC’s most durable change was structural. It abolished the pay bands and grade pay of the 6th CPC and replaced them with a single 18-level pay matrix, a table in which each level is a column and each year of service is a row, with every cell a defined figure. An employee’s pay is a cell, not a band-plus-grade-pay sum, which removed a long list of anomalies in pay fixation and promotion.

The 8th CPC is not bound to keep the matrix. Its terms of reference ask it to examine the pay structure without prescribing a form, so it can retain the matrix, redesign it with more or fewer levels, or return to a different model. It is also expected to weigh the 7th CPC’s own suggestion that decadal commissions be replaced with a rules-based periodic revision. Any pay chart described as the “8th CPC pay matrix” is fabricated until the report is published, because no revised matrix exists.

Allowances and dearness allowance

The 7th Central Pay Commission cut house rent allowance rather than raising it. It recommended 24%, 16% and 8% of basic pay for X, Y and Z class cities, down from the 6th CPC’s 30%, 20% and 10%, on the reasoning that the 2.57 fitment factor had already lifted basic pay sharply. Department of Expenditure Office Memorandum No. 2/5/2017-E.II(B) dated 7 July 2017 notified those rates with effect from 1 July 2017.

The rates climbed back to 30%, 20% and 10% without any commission recommending an increase. Paragraph 2 of the same order pre-authorised two step-ups, to 27%, 18% and 9% when dearness allowance crosses 25% and to 30%, 20% and 10% when it crosses 50%. The Commission had proposed those triggers at 50% and 100%; the government moved both down, which is why the top slab arrived on 1 January 2024 rather than years later. The government also added minimum amounts of Rs. 5,400, Rs. 3,600 and Rs. 1,800 a month that the Commission had not proposed, protecting employees in Levels 1 to 3 from the cut.

Transport allowance is not a percentage of anything. Office Memorandum No. 21/5/2017-E.II(B) dated 7 July 2017 fixes it as a flat monthly figure by pay level, Rs. 7,200 for Level 9 and above, Rs. 3,600 for Levels 3 to 8 and Rs. 1,350 for Levels 1 and 2 in 19 specified cities, and Rs. 3,600, Rs. 1,800 and Rs. 900 elsewhere, with dearness allowance added on top of the slab. Because the order writes every rate as the figure “plus DA thereon”, the credited amount rises at each dearness allowance revision even though the slab has not moved since 2017.

The 8th CPC will review allowances afresh, and the staff side has demanded house rent allowance of 40%, 35% and 30%. What survives, at what rate, is unknown, and the 7th CPC precedent runs the other way: a fresh fitment factor is the standard argument for resetting the percentages downward again. The dearness allowance is the one live number that spans both Commissions: it stands at 60% of basic pay with effect from 1 January 2026 under Office Memorandum F. No. 1/1(i)/2026-E.II(B) dated 22 April 2026, and it continues to be revised twice a year on the All-India Consumer Price Index for Industrial Workers regardless of the 8th CPC’s progress. No merger of dearness allowance into basic pay is under consideration: the Minister of State for Finance said so in a written reply in the Lok Sabha in December 2025, and the 7th CPC framework contains no automatic merger at any dearness allowance level, unlike the 5th CPC practice that produced dearness pay in 2004.

Pension: the first commission after the Unified Pension Scheme

Pension is where the two Commissions sit in genuinely different worlds. The 7th CPC reported in 2015, when the National Pension System applied to those who joined on or after 1 January 2004 and the older defined-benefit pension applied to the rest, and its pension work focused largely on the defined-benefit side and on parity between past and present pensioners.

The 8th CPC is the first Commission to sit after the Unified Pension Scheme came into force on 1 April 2025, offering an assured payout within the National Pension System framework. Its terms of reference ask it to review the pension and retirement-benefit framework in that changed setting, which makes its pension review more consequential than the 7th CPC’s. The staff side has revived its demand to restore the Old Pension Scheme, but that is a demand placed before the Commission, not a decision. Existing pensioners stay on their current terms until any revision is notified.

What happened to existing pensioners in 2016 is the precedent worth knowing, because it shows that a commission’s pension recommendation can be discarded outright. Paragraph 10.1.67 of the 7th CPC report offered pre-2016 pensioners two formulations and the more favourable of the two: notional parity, built by fixing the retiree at the minimum of the corresponding level and adding the increments actually earned at 3% each, or the simple multiplication of the existing pension by 2.57. The 2.57 multiple was paid first, notified through Department of Pension and Pensioners’ Welfare Office Memorandum No. 38/37/2016-P&PW(A)(ii) dated 4 August 2016.

The first formulation was then abandoned. A committee under the Secretary (Pension) found it not implementable, because the increment history of a pensioner who retired decades earlier frequently no longer existed, and the Cabinet recorded that finding on 3 May 2017. What replaced it carries the retiree’s pay forward through each intervening pay commission using the data already in the Pension Payment Order, and pays 50% of that notional pay as pension and 30% as family pension, notified by Office Memorandum No. 38/37/2016-P&PW(A) dated 12 May 2017 with effect from 1 January 2016 at an additional cost of about Rs. 5,031 crore in 2016-17. A pensioner reading 8th CPC coverage should take two things from that sequence: pension revision follows the pay revision by months rather than arriving with it, and the method that reaches the bank account may not be the method in the report.

Coverage and timeline

The 7th CPC covered roughly 47 lakh serving employees and 53 lakh pensioners at implementation. No official beneficiary count has been published for the 8th CPC: the Cabinet release approving the terms of reference on 28 October 2025 states none, and the figures of 50 lakh and 65 lakh repeated in coverage come from the January 2025 announcement. The nearest sourced measure of the same population is the dearness allowance release of 18 April 2026, which puts 50.46 lakh serving employees and 68.27 lakh pensioners in receipt of dearness allowance and dearness relief (Press Information Bureau release PRID 2253245). The pensioner count has grown by about 15 lakh in a decade of retirements, which is why the pension side of the 8th CPC’s mandate is fiscally heavier than the 7th CPC’s was.

Coverage is defined by clause, not by employer. Clause 2(a) of the terms of reference lists nine categories: central government employees industrial and non-industrial, members of the All India Services, personnel of the defence forces, personnel of the Union Territories, the Indian Audit and Accounts Department, members of regulatory bodies set up under Acts of Parliament, officers and employees of the Supreme Court, High Courts whose expenditure is borne by the Union Territories, and judicial officers of subordinate courts in the Union Territories. The Reserve Bank of India is excluded by name, and an employee outside all nine categories gets nothing from the 8th CPC directly. State government employees are outside the remit in both cases, though states have historically adopted central pay revisions through their own orders, which is why clause 2(f) requires the Commission to weigh the likely impact on state finances.

On timing, the 7th CPC took about 21 months from its February 2014 constitution to its November 2015 report, with implementation from January 2016. The 8th CPC has an 18-month reporting window from November 2025, which points to a report due by 3 May 2027 and implementation after the government examines it, typically with some months of further delay and with arrears from a notified effective date. The widely repeated claim that the 8th CPC will take effect from 1 January 2026 is an expectation drawn from the ten-year cycle, not an official decision; with the report itself due by 3 May 2027, implementation is more realistically a 2027 or 2028 event. Staff federations have also asked for interim relief, an ad hoc payment to bridge the wait until the revised pay is notified, as was granted during some earlier commission cycles; the government has made no such commitment for the 8th CPC, so it too remains a demand rather than a benefit in hand.

A worked example: what a fitment factor does to a pay slip

Because the fitment factor is the number most often quoted, it helps to see what it actually does. Take an employee on 7th CPC Level 6, drawing a basic pay of Rs. 44,900 at the first cell. On top of that basic sits the dearness allowance, which at 60% from 1 January 2026 adds Rs. 26,940, so the basic-plus-dearness position is Rs. 71,840 before other allowances. That 60% is not a permanent gain baked into pay: it is compensation for the inflation that has run since the 7th CPC base was set, and it is precisely the amount a fresh pay commission folds back into the revised basic pay.

When a new structure begins, the revised basic pay is built to absorb the accumulated dearness allowance, and the dearness allowance counter is reset near zero. That is why the 7th CPC’s 2.57 was not a 157% rise: the multiplier converted the old basic-plus-dearness position into a new basic pay, and the real increase embedded in it was about 14.29%. Applied to the Level 6 example, a hypothetical 8th CPC fitment of 2.57 on the current basic of Rs. 44,900 would give a new basic near Rs. 1,15,400, but with the dearness allowance reset to zero the immediate change in hand is far smaller than the multiplier suggests, because much of that new basic simply re-labels dearness allowance the employee already draws. A demanded factor of 3.833 would raise the new basic further, but the same reset applies, and the government weighs any such figure against the wage bill before accepting it. This is the arithmetic that makes “the 8th CPC will multiply salaries by 2.86” misleading even before noting that 2.86 is not an official number. To see the current, in-force position for any level and city rather than a projected one, the 7th CPC salary calculator does the full build-up.

Where the ten-year pattern comes from

The rough decade between Commissions is a convention, not a rule. The 5th Central Pay Commission pay took effect from 1 January 1996, the 6th CPC from 1 January 2006, and the 7th CPC from 1 January 2016, each about ten years apart, which is why a 2026 expectation attached itself to the 8th CPC before it was even constituted. But the interval has never been fixed by law, and the 8th CPC was notified in November 2025 with its effective date left open rather than pinned to January 2026.

The 7th CPC itself questioned the model. It recommended that the government stop appointing a fresh commission each decade and instead revise pay periodically through a matrix-based mechanism linked to price movements and the dearness allowance, so that pay could be adjusted without the long wait and the arrears bulge a commission cycle creates. That recommendation was not implemented, which is part of why an 8th Commission was needed at all. Whether the 8th CPC revives rules-based periodic revision is one of the quieter but more consequential questions on its table, because it would change how every future revision reaches employees, and it is the kind of structural recommendation that outlasts any single fitment figure.

From report to pay slip: how a revision is implemented

A pay commission does not change anyone’s salary by itself. It submits a report; the government examines it, usually through a committee of secretaries; the Union Cabinet accepts, modifies, or rejects the recommendations; and the Department of Expenditure then notifies revised pay rules, as it did with the Central Civil Services (Revised Pay) Rules, 2016 for the 7th CPC. Only at that final step does a pay slip change.

Two features of that sequence shape what employees actually receive. First, there is usually a gap of some months between the report and the notified rules, during which pay continues on the old structure. Second, the revised pay is given effect from a notified date that is typically earlier than the notification itself, so the difference for the intervening months is paid as arrears in a lump sum. For the 7th CPC, the rules were notified in 2016 with effect from 1 January 2016, and arrears covered the gap to the notification. For the 8th CPC, with a report due by 3 May 2027, the same pattern implies a notified effective date and arrears once the government acts, but neither the date nor the quantum exists yet. Planning a large purchase around an assumed 8th CPC arrear is planning around a number that has not been decided.

What the government changed from the 7th CPC report

The report is the input, not the outcome, and the 7th CPC round proves it. Coverage of the 8th CPC treats “what the Commission recommends” as the answer an employee is waiting for, when the answer is what the Cabinet accepts and the Department of Expenditure notifies. Four departures from the 7th CPC report are on the record, and each of them moved money.

House rent allowance moved twice. The Commission recommended 24%, 16% and 8% with step-ups when dearness allowance crossed 50% and 100%; the government notified the percentages unchanged but moved the triggers down to 25% and 50% in paragraph 2 of Office Memorandum No. 2/5/2017-E.II(B) dated 7 July 2017, and added the Rs. 5,400, Rs. 3,600 and Rs. 1,800 floors the Commission had not proposed. The effect was to restore 30%, 20% and 10% by 1 January 2024 instead of at a dearness allowance level the Commission expected to be a decade away.

Pension revision for pre-2016 pensioners was rebuilt outright. The Cabinet recorded on 3 May 2017 that the Commission’s recommended formulation “was not found to be feasible to implement on account of non-availability of records in a large number of cases and was also found to be prone to several anomalies”, and substituted the notional-pay method notified on 12 May 2017.

Allowances were delayed. Paragraph 7 of Resolution No. 1-2/2016-IC dated 25 July 2016 froze every allowance except dearness allowance at pre-revised rates while revised pay ran from 1 January 2016, and revised rates began only on 1 July 2017 under Resolution No. 11-1/2016-IC dated 6 July 2017. Employees drew 18 months of revised pay alongside pre-revised allowances, with arrears on the pay and none on the allowances.

The minimum pay survived intact, and that is the fourth data point. The staff side had asked for Rs. 26,000 as on 1 January 2014 and continued to press for a revision after the report; the government did not revise the Commission’s figure, and the CCS (Revised Pay) Rules, 2016 notified on 25 July 2016 carried Rs. 18,000 through unchanged. A departure is not automatic in either direction, which is why treating any single 8th CPC recommendation as a settled entitlement is premature even after the report is published.

How the questions differ from 2015

The 7th and 8th Commissions face different worlds, and their mandates reflect it. When the 7th CPC sat, the National Pension System was a decade old and contested, but it was the only alternative to the old defined-benefit pension. The 8th CPC sits after the Unified Pension Scheme came into force on 1 April 2025, so its pension review must weigh three coexisting frameworks rather than two: the Old Pension Scheme for pre-2004 entrants, the National Pension System, and the Unified Pension Scheme option within it. That alone makes its pension mandate heavier than the 7th CPC’s.

The fiscal setting differs too. The 7th CPC reported when the wage-and-pension bill was already a major claim on the budget, and it was explicit about fiscal prudence; the 8th CPC carries the same caution in its terms of reference, now framed against a larger pensioner population and the cost of the assured Unified Pension Scheme payout. The performance-linkage question also returns: the 7th CPC discussed linking part of pay to productivity without mandating it, and the 8th CPC has been asked to consider the same, so it may revisit performance-related pay for a workforce that has changed shape since 2016. None of these are settled, and they are the questions that make the 8th CPC’s report worth waiting for rather than pre-empting with a projected pay chart.

Reading the figures in circulation

A comparison of the two Commissions is incomplete without naming the claims that present 8th CPC projections as facts, because those claims are what most searches return. Three recur. The first is a fitment factor stated as decided, usually 2.86 or a range such as 1.92 to 2.86; no factor has been fixed, and 2.86 is an earlier verbal staff-side position rather than the analyst projection it is usually labelled as, distinct again from the written staff-side demand of 3.833 and from any government figure. The second is an effective date of 1 January 2026; that date is an inference from the ten-year cycle, and with the report due by 3 May 2027 it cannot be the implementation date. The third is a fully built “8th CPC pay matrix” or a level-wise salary table; no revised matrix exists, so any such table is made by applying an assumed fitment factor to the current matrix, and it is only as reliable as an assumption dressed as data.

The safe reading rule is to separate three categories that coverage tends to blur: what the government or the Commission has decided, what staff federations have demanded, and what commentators have projected. Only the first is fact. The 8th CPC guide keeps that separation explicit and sources each item, and the comparison table at the top of this page marks the 8th CPC column as a status rather than a figure for the same reason.

What is the same

For all the attention on what might change, a great deal carries over by default. The 7th CPC structure remains fully in force during the entire 8th CPC process, so levels, cells, increments, allowances, and pension rules are unchanged until a revision is notified. Dearness allowance continues to be revised on the same index and formula. The machinery is the same too: a judicial chairperson, an academic member, and a serving civil servant as member-secretary, memoranda from staff federations and ministries, and a Cabinet that accepts, modifies, or rejects the recommendations. The Central Pay Commission hub sets out that shared machinery across all eight commissions since 1946.

What employees should do now

Until the 8th CPC reports, plan on the 7th CPC numbers, because they are the only ones in force. Treat every 8th CPC pay chart, fitment figure, and minimum-pay estimate as a projection, and be especially wary of calculators that present an 8th CPC take-home as a settled figure. Follow the process through official channels: the Commission’s portal and the 8th CPC guide, which records each milestone with its source. When you need an exact, in-force figure, the 7th CPC salary calculator applies the current rules to a chosen level, cell, city, and dearness allowance rate.

Frequently Asked Questions (FAQs)

What is the difference between the 7th and 8th Pay Commission?
The 7th Central Pay Commission is the pay structure in force. Its report of November 2015 built the 18-level pay matrix, set a fitment factor of 2.57 and a minimum pay of Rs. 18,000, and took effect on 1 January 2016. The 8th Central Pay Commission was constituted on 3 November 2025 to review that structure, but it has not yet reported: it has fixed no fitment factor, no minimum pay, and no effective date. Until it reports and the Cabinet notifies revised rules, the 7th CPC structure continues to govern every central government salary.
Is the 8th Pay Commission better than the 7th?
There is no 8th CPC pay structure to compare yet. Every figure attributed to the 8th CPC, whether a fitment factor of 2.86 in the press or 3.833 demanded by the staff side, is a projection or a demand, not a recommendation. Whether pay rises by more or less than it did under the 7th CPC will be known only when the Commission submits its report, due by 3 May 2027, and the government acts on it.
Will the 8th CPC keep the pay matrix introduced by the 7th CPC?
That is one of the questions before the Commission. The 7th CPC replaced the earlier pay bands and grade pay with a single 18-level pay matrix. The 8th CPC can retain, redesign, or replace that matrix; nothing in its terms of reference commits it either way. No revised matrix exists until the report is published.
How much gap is there between the 7th and 8th Pay Commissions?
The 7th CPC pay took effect on 1 January 2016 and the 8th CPC was constituted on 3 November 2025, a little under ten years later. Central Pay Commissions have historically been appointed roughly once a decade, though the 7th CPC itself suggested moving to a rules-based periodic revision instead of waiting for a fresh commission each time.
Will the fitment factor be higher under the 8th CPC than 2.57?
It is not yet decided. The 7th CPC fitment factor was 2.57. The staff side has demanded 3.833 and the press has floated figures such as 2.86, but the Commission has fixed no number. A higher fitment factor does not by itself mean a larger net rise, because it is applied to a different base and read alongside the dearness allowance position at the changeover.
Did the government accept the 7th CPC report as it was written?
No, and the departures matter more than the acceptance. The Union Cabinet accepted the pay matrix and the 2.57 fitment factor on 29 June 2016, but the government changed the house rent allowance package: it added minimum amounts of Rs. 5,400, Rs. 3,600 and Rs. 1,800 a month that the Commission had not proposed, and it moved the dearness-allowance triggers for the step-ups down from the recommended 50% and 100% to 25% and 50%. On pension, the Cabinet recorded on 3 May 2017 that the Commission’s first formulation for pre-2016 pensioners was not feasible to implement, and replaced it with a notional-pay method notified by Office Memorandum No. 38/37/2016-P&PW(A) dated 12 May 2017. The report is the input; the notified rules are the outcome.
Who does the 8th CPC cover, and who is left out?
Clause 2(a) of the terms of reference in the Resolution of 3 November 2025 lists nine categories: central government employees industrial and non-industrial, members of the All India Services, personnel of the defence forces, personnel of the Union Territories, the Indian Audit and Accounts Department, members of regulatory bodies set up under Acts of Parliament, officers and employees of the Supreme Court, High Courts whose expenditure is borne by the Union Territories, and judicial officers of subordinate courts in the Union Territories. The Reserve Bank of India is excluded by name. State government employees are outside the remit, though states have historically adopted central pay revisions through their own orders.
Does the 8th CPC change pension along with pay?
The 8th CPC is asked to review pension and retirement benefits, and it is the first Commission to sit after the Unified Pension Scheme came into force on 1 April 2025, so its pension review carries more weight than the 7th CPC’s did. What it will recommend is not known. Existing pensioners remain on their current terms until any revision is notified.

External references

References

  1. Ministry of Finance, Department of Expenditure, Resolution F. No. 01-01/2025-E.III(A), dated 3 November 2025, constituting the Eighth Central Pay Commission, with the terms of reference in clause 2 and the 18-month reporting window in paragraph 5.
  2. Union Cabinet decision of 28 October 2025 approving the terms of reference and composition (Press Information Bureau release PRID 2183289).
  3. Press Information Bureau release PRID 2253245, dated 18 April 2026, stating coverage of 50.46 lakh employees and 68.27 lakh pensioners.
  4. Seventh Central Pay Commission report, submitted 19 November 2015, paragraphs 4.2.5 and 4.2.6 (minimum pay and the Rs. 26,000 demand), 5.1.38 (the 3% increment rate), and 10.1.67 to 10.1.68 (pension formulations for pre-2016 pensioners).
  5. Central Civil Services (Revised Pay) Rules, 2016, notified 25 July 2016, with effect from 1 January 2016.
  6. Ministry of Finance, Department of Expenditure, Resolution No. 1-2/2016-IC, dated 25 July 2016, paragraph 7, freezing allowances at pre-revised rates, and Resolution No. 11-1/2016-IC, dated 6 July 2017, giving revised allowances effect from 1 July 2017.
  7. Department of Expenditure Office Memorandum No. 2/5/2017-E.II(B), dated 7 July 2017, prescribing house rent allowance at 24%, 16% and 8%, the minimum amounts of Rs. 5,400, Rs. 3,600 and Rs. 1,800, and the escalation to 27/18/9 and 30/20/10.
  8. Department of Expenditure Office Memorandum No. 21/5/2017-E.II(B), dated 7 July 2017, prescribing transport allowance rates by pay level, plus dearness allowance thereon.
  9. Department of Pension and Pensioners’ Welfare Office Memorandum No. 38/37/2016-P&PW(A)(ii), dated 4 August 2016, and Office Memorandum No. 38/37/2016-P&PW(A), dated 12 May 2017, on the revision of pension of pre-2016 pensioners.
  10. Department of Expenditure Office Memorandum F. No. 1/1(i)/2026-E.II(B), dated 22 April 2026, notifying dearness allowance at 60% with effect from 1 January 2026.