Govt hopes to bear 8th pay Commission cost exclusively from FY27, says expenditure Secy Manoj Govil

The Finance Minister has kept in touch with Service of Protection and Home Issues as well as the Division of Staff and Preparing to recommend the terms of reference for the Commission, following which the centre will support them.

The Budget for 2025-26 has not calculated in any consumption that might emerge by virtue of carrying out the 8th pay Commission’s suggestions, considering that the report might require one more year to be submitted and in this way endorsed, Expenditures Secretary Manoj Govil told Media.

The Finance Minister has kept in touch with Service of Protection and Home Issues as well as the Division of Staff and Preparing to recommend the terms of reference for the Commission, following which the centre will endorse them.

The commission will begin working once the terms of reference is endorsed, Govil added.

“Previous commissions have required over one year to introduce the report. On the off chance that the commission is set up even in the long stretch of Walk 2025, the report ought to come in by Walk 2026, however it could take under a year. Thus, for FY26 we see no effect of the 8th pay commission,” Govil told Media in a meeting.

Prime Minister nister Narendra Modi last month supported the arrangement of the 8th pay Commission for focal government representatives.

The term of the 7th pay commission, presently in operation, is set to end in 2026.

Pay commissions are set up once in 10 years to recommend changes in the salary structure of government employees.

On whether the government has an initial estimate of the additional cost following the implementation of the 8th Pay Commission, Govil said that it will be for the Commission to decide after factoring in the conditions that confront them.

“We have some data on how it cost under the 7th pay Commission, yet every commission is unique, the circumstances that stand up to them are unique, so it will be for the commission to choose, yet it isn’t even expected to affect the Spending plan for FY26, since the soonest one can expect the report is the point at which the planned period is potentially finished,” the secretary said.

“Regardless of whether the Commission’s proposal is acknowledged in FY27, it is conceivable a portion of the suggestions might be given impact to from January 1, 2026, for those three months, which fall in FY26. In any case, since those will be unfulfilled obligations, the use will be turned over to 2026-27,” Govil made sense of.

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