Constitution of the Eighth Central Pay Commission in Budget 2025 – Latest Updates (December 2024)

Date: 3rd December 2024
Source: Rajya Sabha Unstarred Question No. 870

In response to questions regarding the Eighth Central Pay Commission (CPC) during the Rajya Sabha session on 3rd December 2024, the Ministry of Finance provided the following updates:

Key Points from the Reply:

1. Constitution of the Eighth Central Pay Commission:

   • The Government of India is not actively considering the constitution of the Eighth Central Pay Commission for Central Government employees in the upcoming Union Budget for February 2025.
   • This decision comes despite rising concerns about inflationary trends affecting the pay structure of Central Government employees.

2. Rationale Behind the Decision:

   • As of now, no proposal is under consideration by the Government regarding the formation of the Eighth CPC for Central Government employees.

3. Fiscal Condition of the Union Government:

   • The issue of fiscal constraints and the possibility of increasing the pay of Central Government employees was also raised. However, the Ministry clarified that the fiscal condition of the Union Government is not a factor currently hindering the decision to establish the Eighth Central Pay Commission.

Details from the Rajya Sabha Answer:

• Question: Whether the Government is considering the formation of the Eighth Central Pay Commission in light of unprecedented inflationary trends.
• Answer: The Minister of State for Finance, Shri Pankaj Chaudhary, confirmed that the Government is not considering the constitution of the Eighth CPC at this point.
• The question of pay increases and their feasibility in the face of fiscal constraints was also addressed, with no immediate plans to address the same.

Takeaways for Central Government Employees:

• Despite inflationary pressures, there are no immediate plans for the formation of the Eighth Central Pay Commission in Budget 2025.
• The Government’s fiscal condition does not appear to be an obstacle at this moment, but there is no indication of any pay revisions being implemented through the formation of a new Pay Commission in the near future.

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