Is Modi bypassing the 8th Central Pay Commission

THE recommendations of the still-to-be-set-up Eighth Central Pay Commission (8th CPC) are due for implementation from January 1, 2026. So, why has the government still not constituted the commission?

A cryptic announcement was made by Ashwini Vaishnaw, Minister for Information and Broadcasting, in January 2025, a few days before the Delhi elections. He said the Union Cabinet was discussing the matter. There was no follow-up. Surprisingly, the government replied to a Lok Sabha unstarred question, in August 2025, that there was no proposal to set up the 8th CPC. What is going on? Will the Modi government try some unconventional method this time?

The 7th Central Pay Commission (7th CPC) was constituted by the Manmohan Singh government on February 28, 2014. A pay commission (PC) usually takes about 18-24 months to complete its work. The government takes about 6-12 months to implement its recommendations. The PCs have an enormous amount of work to do, captured in their terms of reference (TORs). The 7th CPC was required to make recommendations regarding the emoluments of employees of the Central government, All-India Services (AIS), union territories, the Supreme Court and the Indian Audit and Accounts Department as well as members of regulatory bodies. In addition, it was asked to make recommendations for the defence forces personnel.

The 7th CPC 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 the specialised needs of various departments, agencies and services. It was also to examine the existing schemes of payment of bonus and recommend an appropriate incentive scheme to reward excellence in productivity, performance and integrity.

The 7th CPC comprised Justice Ashok Kumar Mathur as chairman and Vivek Rae, Rathin Roy and Meena Agarwal as members. On August 26, 2015, the Modi government extended its term by four months, till December 31. . The 7th CPC submitted its report on November 19, 2015 and its recommendations on pay and pensions were implemented on June 29, 2016, effective from January 1, 2016.

In an unusual manner, the Press Information Bureau published on January 16, 2025 a tweet, along with a video of I&B Minister Ashwini Vaishnaw. "Prime Minister @narendramodi approves setup of the 8th Central Pay Commission for all employees of the Central Government. Since 1947, seven Pay Commissions have been constituted, with the last one implemented in 2016.

As the 7th Pay Commission's term concludes in 2026, initiating the process in 2025 ensures sufficient time to receive and review recommendations before its completion. Union Minister @AshwiniVaishnaw." This press release displayed a clumsy understanding of the PC's process and was intended only to influence Delhi voters, which went to the polls on February 3, 2025. The minister was wrong about conclusion of the term of 7th CPC, and the time PCs take in completing their work.

His 'assurance' that the 8th CPC would be constituted, submit its report, and the government would review its recommendations for implementation before January 1, 2026 was unrealistic and hollow, as later events also proved. In India's history of setting up PCs (the first PC was established in 1946), never has such a cavalier approach been adopted by any government.

The government furnished a truthful but strange response to an unstarred question no 3541 (Lok Sabha) on August 8, on the subject of the 'Constitution of the 8th Pay Commission'. The first part of the question was "whether the Government proposes to ensure timely constitution of 8th Central Pay Commission for Central Government employees so that it could be implemented on 01.01.2026." The government replied: "No such proposal is under consideration with the Government for constitution of 8th Central Pay Commission for the Central Government employees." There could not have been a blunter denial of Ashwini Vaishnaw's video tweet.

For the second and third parts of the question, relating to details and reasons for the answer to part one of the question, the government simply stated, "Do not arise." For part six of the question regarding "the other measures being taken by the Government to increase their salary in view of rising inflation', the government recited the general provision that the dearness allowance (DA) is revised every six months on the basis of inflation as per the All-India Consumer Price Index.

While the answers to unstarred questions are finalised at the level of joint secretaries, it would be surprising if the joint secretary concerned had decided to deny the setting up of the 8th CPC without the knowledge of the Finance Minister and the Secretary Expenditure in such a sensitive matter affecting the pay, allowances and pensions of millions of government servants in India. What is the government thinking?

The government has crafted and mastered a new way of granting bonanzas/gifts to the people of India and government servants — directly from PM Modi.

The middle class was given a Rs 1-lakh-crore income tax bonanza in Budget 2025-27 by making all incomes of individuals up to Rs 1 lakh per month tax-free and significantly reducing the tax payment for those with incomes up to Rs 2 lakh per month.

On August 15, Prime Minister Modi announced a Rs 2-lakh-crore Double Diwali Gift GST cut bonanza to the people, rendering all statutory authorities, including the GST Council, ineffective; they duly rubber-stamped it.

It appears quite likely that Modi will announce a handsome pay and pension hike to please over two crore government employees and pensioners (including of the state governments) at a time of his choice — a direct gift from him. The minor procedural correctness of a technocratic exercise by a PC can be conveniently dispensed with in the battle of winning perceptions and votes.

Subhash Chandra Garg is former Finance Secretary.