The Union Cabinet, chaired by Prime Minister Narendra Modi, on Tuesday approved the Terms of Reference (ToR) for the 8th Central Pay Commission.
The 8th Central Pay Commission will be a temporary body comprising one Chairperson, one Part-Time Member, and one Member-Secretary. The Commission has been mandated to submit its recommendations within 18 months from the date of its constitution. It may also submit interim reports on specific matters as and when its recommendations are finalised.
While framing its recommendations, the Commission will take into account the prevailing economic conditions in the country, the need for fiscal prudence, and the requirement to ensure that sufficient resources are available for developmental and welfare expenditure. It will also consider the financial implications of non-contributory pension schemes, the likely impact of its recommendations on State Government finances, and the emolument structures, benefits, and working conditions in Central Public Sector Undertakings and the private sector.
The Central Pay Commissions are periodically constituted to review and recommend changes in the pay structure, retirement benefits, and service conditions of Central Government employees. Traditionally, pay commissions are set up once every decade, and their recommendations are implemented accordingly. Following this pattern, the recommendations of the 8th Central Pay Commission are expected to take effect from January 1, 2026.
The Government had earlier announced the formation of the 8th Central Pay Commission in January 2025 to examine and suggest revisions in the salaries, allowances, and related benefits of Central Government employees.