8th CPC Pension Revision Concerns: Government Confirms 8th Pay Commission; No DA Merger Planned Yet

8th CPC Pension Revision Concerns: Government Confirms 8th Pay Commission; No DA Merger Planned Yet

Government of India has officially notified the constitution of the Eighth Central Pay Commission (8th CPC), bringing relief and clarity to lakhs of Central Government employees and pensioners.

The announcement came through a resolution issued on November 3, 2025, and was later detailed in a written reply in the Rajya Sabha on December 2, 2025.

The 8th Pay Commission will be chaired by Smt. Justice Ranjana Prakash Desai, with Prof. Pulak Ghosh as Member (Part-Time) and Shri Pankaj Jain as Member-Secretary. The Commission has been given 18 months from its formation date to submit its recommendations. It may also provide interim reports if required.

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The Terms of Reference empower the Commission to examine pay, allowances, pension, bonus structures, and various service benefits for Central Government employees, including defence personnel, All India Services, Union Territories staff, Indian Audit & Accounts Department, employees of regulatory bodies (excluding RBI), and judicial officers of subordinate courts in Union Territories.

The 8th CPC will work towards an emolument structure that supports efficiency, accountability, and competitiveness in government service.

Responding to queries in Parliament, the Ministry of Finance clarified that there is currently no proposal to merge existing Dearness Allowance (DA) or Dearness Relief (DR) with basic pay as an interim measure. This confirmation settles widespread speculation as DA has crossed significant levels due to inflation.

The government further confirmed that the Eighth CPC will look into the revision of pensions along with pay and allowances, taking into account financial sustainability, economic conditions, and impacts on both Central and State budgets.

The notification marks the beginning of a major pay revision cycle that is expected to impact lakhs of serving employees and retirees, with the new structure likely to take effect in 2026 after the Commission’s final report and implementation approval.