Overview
- Minister of State for Finance Pankaj Chaudhary told Parliament the 8th Central Pay Commission will recommend on pay, allowances and pensions.
- The government said there is no proposal at present to merge Dearness Allowance or Dearness Relief with basic pay.
- EAC-PM member Neelkanth Mishra estimated implementation could cost over Rs 4 lakh crore, rising to nearly Rs 9 lakh crore when typical five quarters of arrears are included.
- The potential payout is expected to shape FY28 budgeting for the Centre and states as India moves to a five-year debt-to-GDP framework from FY27.
- Constituted on November 3, 2025, the commission is expected to report in 2027, with rollout reported as likely in FY28, after unions pressed for clarity when pensions were not explicitly cited in the original ToR.