What is the story about?
8th Pay Commission Update: In a major development for central government employees, the Union Cabinet led by Prime Minister Narendra Modi has approved
the Terms of Reference (ToR) for the 8th Central Pay Commission. The recommendations will impact the salaries of about 50 lakh central staff and 69 lakh pensioners. The government had announced the constitution of the 8th Pay Commission in January 2025 to review pay, allowances and retirement benefits for Central Government employees. Also Read: Big Update On 8th Pay Commission! Cabinet Approves Terms Of Reference (ToR)
Commission Composition & Timeline
According to the Cabinet decision, the 8th Pay Commission will function as a temporary body with:
- Chairperson: Former Supreme Court Justice Ranjana Prakash Desai
- Part-Time Member: Professor Pulak Ghosh (IIM Bangalore)
- Member-Secretary: Petroleum Secretary Pankaj Jain
Its report is due within 18 months of formation, with an option to submit interim recommendations.
When asked about the rollout of revised salaries, I&B Minister Ashwini Vaishnaw said: “The specific date will be decided once the interim report comes in... But, mostly it should be January 1, 2026.”
What Will the Commission Examine?
The ToR, drafted by the Joint Consultative Machinery (JCM) and approved by the Cabinet, will guide recommendations and take into account:
- India’s economic conditions and fiscal prudence
- Availability of funds for welfare and development
- Pension liabilities
- Impact on State finances
- Comparisons with PSU and private-sector pay
Pay Commissions are generally set up every 10 years. Following that cycle, the 8th Pay Commission’s recommendations are expected to take effect from January 1, 2026, similar to how the 7th Pay Commission came into force in 2016.
Central government staff will continue receiving periodic Dearness Allowance (DA) revisions to offset inflation until the new pay structure is implemented.
Do you find this article useful?
