New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Tuesday approved the Terms of Reference (ToR) for the 8th Central Pay Commission (CPC), paving the way for a comprehensive review of pay structures, allowances, and pension benefits for central government employees.
The 8th CPC, to be chaired by former Supreme Court judge Justice Ranjana Prakash Desai, will also include Professor Pulak Ghosh as Member (Part-Time) and Pankaj Jain as Member-Secretary. The Commission has been mandated to submit its recommendations within 18 months of its constitution and may issue interim reports if required.
According to the ToR approved by the Cabinet, the panel will take into account the country’s overall economic condition, fiscal prudence, and the financial implications of its recommendations on both the Centre and state governments. It will also consider pay structures and service conditions in public sector undertakings and the private sector while framing its proposals.
The recommendations of the 8th CPC are expected to take effect from January 1, 2026, in line with the decadal revision pattern followed since the first Pay Commission.
The government had earlier announced the formation of the 8th CPC in January 2025 to review the salaries of about 50 lakh central government employees and 69 lakh pensioners across various departments.
