The Union Cabinet on Tuesday approved the Terms of Reference (ToR) for the 8th Central Pay Commission, paving the way for a major salary revision for nearly 50 lakh central government employees and 69 lakh pensioners. The commission will be chaired by former Supreme Court judge Ranjana Prakash Desai and is expected to submit its report within 18 months, with the revised pay structure likely to take effect from January 1, 2026, according to Information and Broadcasting Minister Ashwini Vaishnaw.
Composition of the 8th Pay Commission
Justice Ranjana Prakash Desai will lead the commission as its chairperson, while Professor Pulak Ghosh will serve as a member, and Pankaj Jain has been appointed as the member-secretary. The 8th Pay Commission was officially approved in January 2025 to review and recommend changes to the pay, allowances, and pension structure of central government employees and retirees.
What the Cabinet Announced for the 8th Pay Commission
At the Cabinet briefing, Minister Ashwini Vaishnaw said the Terms of Reference were finalised after consultations with various ministries, state governments, and representatives from the Joint Consultative Machinery (JCM), which represents employees’ interests.
He stated that the government had earlier sought inputs from key stakeholders, including the Defence and Home Ministries, the Department of Personnel and Training (DoPT), and several state governments, before finalising the ToR.
Implementation Timeline of the 8th Pay Commission
Responding to questions about when the revised pay scales would be implemented, Minister of State for Finance Pankaj Chaudhary had previously clarified that, “The implementation would be taken up once the recommendations are made by the 8th CPC and are accepted by the government.”
The 8th Pay Commission will follow the standard cycle of such reviews, which are typically held once every 10 years.
Background and Past Pay Commissions
The 7th Pay Commission was established in February 2014, and its recommendations were implemented starting January 1, 2016. The upcoming 8th Pay Commission, therefore, aligns with the decade-long pattern, becoming due for rollout on January 1, 2026.
Dearness Allowance and Inflation Adjustment in 8th Pay Commission
To shield employees from the impact of inflation, the government also provides Dearness Allowance (DA), which is revised every six months based on changes in the inflation rate. The DA serves as a key mechanism to ensure that the real value of salaries is maintained between pay commission cycles.
With the Cabinet’s approval of the 8th Pay Commission’s Terms of Reference, the process for revising government salaries and pensions has officially begun. If implemented as scheduled, millions of central employees and pensioners will receive revised pay starting January 2026, marking the next significant update in India’s public sector compensation structure.
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