The government has officially constituted the Eighth Central Pay Commission, issuing a resolution on November 3, 2025.

The government has confirmed that the 8th Pay Commission (8th CPC) will also recommend changes related to pension revision, ending weeks of speculation and sustained demands from central government employees and pensioner associations. The clarification came from the Finance Ministry during Rajya Sabha proceedings- bringing relief to lakhs of pensioners who had been urging the Centre to explicitly include pension revision in the Terms of Reference (ToR) of the upcoming pay commission.

Will 8th Pay Commission Revise Pensions?

Yes. Responding to an unstarred question from MPs Javed Ali Khan and Ramji Lal Suman, Minister of State for Finance Pankaj Chaudhary confirmed that pension revision is indeed a part of the 8th CPC’s mandate. He noted, “The 8th CPC will make its recommendations on various issues viz. pay, allowances, pension, etc. of the central government employees.” This clarification comes after multiple employee and pensioner bodies wrote to the Prime Minister and the Finance Minister, urging that the ToR be amended to explicitly mention pension-related recommendations.

Will Dearness Allowance (DA) Be Merged With Basic Pay?

One of the biggest questions among employees is whether the government will merge the existing Dearness Allowance (DA) or Dearness Relief (DR) with basic pay as an immediate relief measure. The government has made it clear that the answer is no. Pankaj Chaudhary reiterated in Parliament that “no proposal regarding the merger of the existing dearness allowance with the basic pay is under consideration.”

Employee unions have repeatedly pushed for DA merger- especially since DA crossed 50% in January 2024, which traditionally triggers such discussions. A merger would raise overall salaries and future increments. However, the government has consistently maintained that such a step is not being considered.

Has Government Constituted 8th Pay Commission?

Yes. The government has officially constituted the Eighth Central Pay Commission, issuing a resolution on November 3, 2025. The notification outlines the appointment of the Chairman, the Members and the approval of the Terms of Reference (ToR). The ToR will serve as the guiding framework for the commission’s recommendations, which will cover the pay structure, allowances, pension revisions and broader systemic reforms.