8th Pay Commission to affect over 50 lakh serving employees, 69 lakh pensioners; no DA-Basic linking yet

The Union Finance Ministry placed the latest official figure of central government employees at 50.14 lakh and pensioners at around 69 lakh, confirming the number of beneficiaries linked with the forthcoming 8th Central Pay Commission.

The information was presented in a written response in the Lok Sabha, where the government was asked about implementation plans, Terms of Reference and consultation mechanisms for the next pay revision cycle, according to reports by The Economic Times.

Figures Disclosed In Parliament

Reports stated that the implementation date would be determined by the Union government. The Commission would submit its recommendations within 18 months of being set up, and that sufficient budgetary provision would be arranged after the recommendations are accepted. 

According to the parliamentary reply, the 8th Pay Commission has started functioning under official Terms of Reference notified through a resolution dated 3 November 2025. The ToR requires examination of pay structures, pensions, allowances and other financial elements relating to central government personnel.

No Proposal For Merging DA with Basic Pay

Clarifications were also issued on the question of merging Dearness Allowance (DA) or Dearness Relief (DR) with basic pay at this stage.

The Union Government has no such proposal under consideration at present, and it has recently revised DA and DR rates from 55% to 58%, with effect from 1 July 2025, and released arrears accordingly.

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Impact Likely Only After FY27

According to earlier reports, the Commission’s work is in the initial phase and that its recommendations are expected only after 18 months from the constitution.

Previous official comments and budget documents have pointed to the absence of financial provision for implementation during 2025-26, with the earliest fiscal impact expected no sooner than 2027, once recommendations are finalised and approved