The Missing 8th Pay Commission: Modi Govt’s Silence Raises Questions

Going by the convention, the recommendations of the Eighth Pay Commission are due for implementation from 1 January 2026, less than three months away. However, the Government of India (GoI) has still not constituted the 8th PC. A cryptic announcement was made by Ashwini Vaishnaw, Minister for Information and Broadcasting, in January this year—a few days before Delhi elections—about the Union Cabinet discussing setting up of the 8th PC and its implementation well before 1 January 2026. Surprisingly, in August 2025, the GoI replied to a Lok Sabha question, saying that there was no proposal to set up the 8th PC. So what is going on? Where has the 8th PC vanished? Does the Narendra Modi government have any other trick up its sleeves?8th Pay Commission: Will Pensioners’ Rights Now Depend on Political Will? The 7th Pay Commission was constituted by the Manmohan Singh government on 28 February 2014, months before the Lok Sabha elections.Pay commissions usually take about 18 to 24 months to complete their work. Central government takes about six to 12 months to process its recommendations and implement it. The 7th PC was given time until 27 August 2015.The PCs have an enormous amount of work to do, captured in their terms of reference (TORs). The 7th PC was required it to make recommendation for six categories of employees:Central government employeesOfficers of All India Services (AIS)Personnel of Union TerritoriesStaff of Indian Audit and Accounts DepartmentMembers of regulatory bodiesOfficers and employees of the Supreme Court. In addition, the 7th PC was asked to make similar recommendations for the personnel belonging to the Defence Forces. The 7th PC was to examine, review, evolve, and recommend changes regarding the principles that should govern the emoluments structure including pay, allowances, and other facilities/benefits, in cash or kind, having regard to rationalisation and simplification therein as well as specialised needs of various departments, agencies, and services. It was also to examine existing schemes of payment of bonus and to recommend an appropriate incentive scheme to reward excellence in productivity, performance and integrity. On 28 February 2014 itself, the GoI appointed the 7th PC, comprising Justice Ashok Kumar Mathur as chairman and Vivek Rae, Dr Rathin Roy and Smt Meena Agarwal as members. On 26 August 2015, Modi Government extended its term by four months upto 31 December 2015. The 7th PC submitted its report on 19 November 2015 and its recommendations on pay and pensions were implemented on 29 June 2016, effective from 1 January, 2016. The non-establishment of 8th PC, even until October 2025, is more than an incredible delay.In an unusual and casual manner, PIB India published a tweet on 16 January 2025, displaying a very clumsy understanding of the PCs processes. It was only meant to influence Delhi voters, which voted on 3 February, 2025. The minister was completely wrong about conclusion of the term of 7th PC and the time PCs take in completing their work.His ‘assurance’ that the pay commission would be constituted, submit its report, review of its recommendations by the government and its implementation before 1 January 2026 was completely unrealistic and hollow as later events proved. In India’s history of setting up PCs (the first PC was established in 1946, even before independence), there has never been such a cavalier approach adopted by any government. Five Fault Lines the 16th Finance Commission Can’t IgnoreThe GoI furnished a truthful but strange response to an unstarred question no 3541 (Lok Sabha) on 8 August, 2025 on the subject of ‘Constitution of 8th Pay Commission’. It had four parts.In response to first part, on whether the government proposes to ensure timely constitution of 8th Central Pay Commission for Central Government employees so that it could be implemented on 1 January 2026, Pankaj Chaudhary, Union Minister of State for Finance of India, responded with the following."No such proposal is under consideration with the Government for constitution of 8th Central Pay Commission for the Central Government employees."Pankaj ChaudharyThere could not have been a blunter denial of Ashwini Vaishnav’s video tweet.For part ii and iii of the question, relating to details and reasons for answer to part i of the question, Chaudhary, continuing with the same 'I could not care less; attitude simply stated, ‘Do not arise’. For part vi of the question, which was about other measures being taken by the government to increase their salary in view of rising inflation, the GoI recited general provision that the dearness allowance (DA) is revised periodically every six months on the basis of inflation as per All India Consumer Price Index.While the answers to unstarred questions are finalised at the level of Joint Secretaries, I would be completely surprised if the concerned Joint Secretary decided to make this blunt denial of setting up 8th PC without the knowledge of Finance Minister and Secretary Expenditure, in such a sensitive matter affecting pay, allowances, and pensions of millions of government servants in India.To me, it seriously indicates that the Modi Government has no intention to set up the 8th Pay Commission. The GoI has crafted and mastered a new way of granting bonanzas/gifts to the people of India and government servants, directly from Prime Minister Modi. The middle class of India was given a Rs 1 lakh crore income tax bonanza in budget 2025-26, by making all individual tax-filers, with incomes upto Rs 1 lakh per month, completely tax-free and significantly reducing tax payment for those with incomes upto Rs 2 lakh per month. On 15 August 2025, Prime Minister Modi announced a Rs 2 lakh crore Double Diwali Gift GST cut bonanza to the people rendering all statutory authorities including GST Council ineffective: they duly rubber stamped it. It appears quite likely that PM Modi will announce a handsome pay and pension increase package to please 2 crore strong government servants and pensioners (including of the state governments) at a time of his choice— a direct gift from him. Minor procedural correctness of a technocratic exercise by a pay commission can be conveniently dispensed within the battle of winning perceptions and votes. ((Subhash Chandra Garg is the Chief Policy Advisor, SUBHANJALI, and Former Finance and Economic Affairs Secretary, Government of India. He's the author of many books, including 'The $10 Trillion Dream Dented, 'We Also Make Policy', and 'Explanation and Commentary on Budget 2025-26'. This is an opinion piece. The views expressed above are the author’s own. The Quint neither endorses nor is responsible for the same.)

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The Missing 8th Pay Commission: Modi Govt’s Silence Raises Questions

In India’s history of setting up pay commissions, there has never been such a cavalier approach by any government.

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Topics: PM Modi Government Ashwini Vaishnaw