The budget for the financial year 2025-26 does not include any expenditure due to the implementation of the 8th Pay Commission recommendations, as the report may take another year to be submitted and then approved.
According to the news of Moneycontrol, Expenditure Secretary Manoj Goel has given this information. Goel also said that the commission will start working after the terms of reference are approved. He said that previous commissions had taken more than a year to submit the report.
The report should be out by March 2026
According to the news, Govil estimates that even if the commission is set up in the month of March 2025, the report should come by March 2026. However, he also said that it may take less than a year. This is the reason why we do not see any impact of the 8th Pay Commission for the financial year 2026. Let us tell you, PM Modi has recently approved the formation of the Eighth Pay Commission. The term of the current 7th Pay Commission is going to end in 2026.
Additional cost after implementation of 8th Pay Commission
Regarding the initial estimate of additional cost after the implementation of the 8th Pay Commission, the Expenditure Secretary said that the Commission will have to take a decision keeping in mind the circumstances that the Commission will have to face. Let us tell you, a Pay Commission is constituted once in 10 years to recommend changes in the salary structure of government employees. The Secretary said that there is some information about the cost under the Seventh Pay Commission, but every commission is different, the circumstances they face are different, so the Commission will have to take a decision.
Govil said that even if the commission’s recommendation is accepted in FY27, it is possible that some recommendations may be effective from January 1, 2026, for the three months that fall in FY26. However, there will be arrears, so the expenditure will be extended to 2026-27.
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