8th Central Pay Commission Gets Cabinet Nod

• Cabinet approves Terms of Reference for the 8th Central Pay Commission under PM Narendra Modi’s chairmanship.
• The temporary body will have a Chairperson, one part-time Member, and a Member-Secretary.
• Recommendations expected within 18 months, with scope for interim reports.
• Panel to balance pay revision with fiscal responsibility and state finances.

GG News Bureau
New Delhi, 28th Oct: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Tuesday, approved the Terms of Reference (ToR) for the 8th Central Pay Commission (CPC), which will review the pay structure, benefits, and service conditions of Central Government employees.

As per the approved framework, the Commission will function as a temporary body comprising a Chairperson, one Member (Part-Time), and one Member-Secretary. It has been mandated to submit its final recommendations within 18 months of its constitution. Additionally, the panel may issue interim reports on specific matters if deemed necessary during the process.

While making its recommendations, the Commission will consider the country’s economic conditions, the need for fiscal prudence, and the availability of resources for developmental and welfare expenditure. It will also examine the impact on State Government finances, the cost of non-contributory pension schemes, and the emoluments and working conditions in Central Public Sector Undertakings (CPSUs) and the private sector.

Central Pay Commissions are periodically constituted to review salary structures, retirement benefits, and service conditions of Central Government employees, typically every ten years. The 8th CPC’s recommendations are expected to take effect from January 1, 2026, continuing the decadal pattern of revisions.

The Government had first announced the formation of the 8th Central Pay Commission in January 2025, reaffirming its commitment to ensuring fair compensation while maintaining fiscal balance.