Cabinet approves 8th Central Pay Commission terms of reference: Move to benefit 50 lakh employees

In a move heralding good news for central government employees, the Cabinet has given its nod to the terms of reference of the 8th Central Pay Commission. 

 

"The 8th Central Pay Commission will be a temporary body. The Commission will comprise of one Chairperson; One Member (Part Time) and one Member-Secretary.  It will make its recommendations within 18 months of the date of its constitution. It may consider, if necessary, sending interim reports on any of the matters as and when the recommendations are finalized," mentioned an official press release by the Cabinet. 

 

The recommendations of the pay panel will benefit about 50 lakh central government employees and 69 lakh pensioners, PTI reported. 

 

The pay panel will submit an interim report to the government and will be chaired by former Supreme Court judge Ranjana Prakash Desai. 

 

Speaking on the likely implementation date, I&B Minister Ashwini Vaishnaw said, “Mostly it should be January 1, 2026.”

 

According to the Cabinet, while making the recommendations, the panel will keep in view the economic conditions prevailing in the country, the need for fiscal prudence and the unfunded cost of non-contributory pension schemes. The panel will also ensure that adequate resources are available for developmental and welfare measures. 

 

Experts in the panel will keep in view the prevailing emolument structure, benefits and working conditions available to employees of Central Public Sector Undertakings and the private sector. The recommendations of the panel are usually taken up by the State governments, with some modifications. The likely impact of the suggestions will be kept in view as well. 

 

The Government had announced the formation of the 8th Central Pay Commission in January 2025 to examine and recommend changes in the Salaries and other benefits of Central Government employees.

 

Usually, the recommendations of the pay commissions are implemented after a gap of every ten years. 

 

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