8th Pay Commission: Big news for 1 crore families, government clears the picture on pension revision, here is the update on salary
Central government employees and pensioners have received significant relief. Recently, the government clarified in the Rajya Sabha that the 8th Pay Commission will review pensions along with salaries. The commission began work on November 3, 2025. However, there is currently no proposal to merge DA into the basic salary. Changes to salary, allowances, and pension structures will be finalized in the coming months.
8th Pay Commission: The uncertainty that had been looming over central government employees and pensioners for the past few weeks has now been completely cleared.
The Finance Ministry has confirmed in the Rajya Sabha the news that millions of government employees and retired personnel across the country have been waiting for.
The government has clarified that the Eighth Pay Commission will not only determine the salary structure for existing employees but will also make recommendations on pension revisions.
Will there be any change in pension?
The biggest question among employee organizations and the pensioner community was whether pensions were included in the 8th Pay Commission's terms of reference.
In fact, several employee unions had previously written to the government expressing concern that pensions should be explicitly mentioned in the terms of reference.
Clearing this doubt, Minister of State for Finance Pankaj Chaudhary issued an official statement in the Rajya Sabha. He clearly stated that the Eighth Pay Commission's mandate is very broad.
It will review salaries and allowances as well as pensions. This means that when the Commission submits its report, it will outline a complete roadmap for increasing retired employees' pensions and adjusting them to current inflation.
What did the government say on adding DA to basic salary?
While there has been some relief on the pension front, the government's stance on dearness allowance (DA) has appeared somewhat strict.
Employees had a strong expectation that once DA crossed 50%, it would be merged into their basic pay. This demand is a longstanding one, and employee unions have argued that the base basic salary should rise in line with rising inflation.
However, the government has put an end to this hope in Parliament. The Minister of State for Finance clarified that no proposal to merge dearness allowance into basic pay is under consideration by the government. This means that the old salary calculation formula will remain in effect for now, and employees may have to wait a little longer on this front.
Work began on November 3.
The government has also confirmed that the Eighth Pay Commission has been officially constituted on November 3, 2025. The Chairman and members of the Commission have been appointed and their terms of reference (ToR) have been communicated to them.
This commission will now study the current economic situation, inflation rates, and the state of the government treasury over the next few months. Based on this, proposals for major changes to the salary structure, allowances, and pension system will be formulated.
This news is certainly a positive sign for employees that the process has now moved from paper to reality. The coming times will witness major economic changes for government employees.