Union Information and Broadcasting Minister Ashwini Vaishnaw
Credit: PTI Photo
New Delhi: In a big cheer to the central government employees, the Union Cabinet on Tuesday approved the terms of reference of the 8th Central Pay Commission.
The Commission recommendation will impact the salaries of around 50 lakh central government employees, including defence services personnel, and 69 lakh pensioners.
"The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, today approved the Terms of Reference of 8th Central Pay Commission," Information and Broadcasting Minister Ashwini Vaishnaw told reporters.
In January 2025, the Central Government announced the formation of the 8th Central Pay Commission to review the central government employees salaries.
The Commission will be headed by former Supreme Court judge Ranjana Prakash Desai and will have one part-time member -- IIM (Bangalore) Professor Pulak Ghosh, while Petroleum Secretary Pankaj Jain will be the Member Secretary.
The commission will examine and recommend changes in salaries and other benefits of central government employees. The recommendations of the Commission are likely to be effective from January 1, 2026.
The commission will submit its final report in 18 months and before that it is likely to submit an interim report.
On the date of implementation of the pay panel award, Vaishnaw said, "The specific date will be decided once the interim report comes in... But mostly it should be January 1, 2026."
The pay commission announcement comes ahead of Bihar state elections, which will be held between November 6 and 11.
According to the government, the 8th CPC would have to keep several factors in mind while coming up with its recommendations.
These include the economic conditions in the country and the need for fiscal prudence, the need to ensure that adequate resources are available for developmental expenditure and welfare measures, the unfunded cost of non-contributory pension schemes, the impact of its recommendations on state finances, as well as the current emolument structure, benefits and working conditions of employees of central public sector undertakings and the private sector, said a statement.
Usually, recommendations of the pay commissions are implemented after a gap of every 10 years. Going by this trend, the effect of the 8th Central Pay Commission recommendations would normally be expected from January 1, 2026, the government said in a statement.
The 7th Pay Commission was constituted in February 2014. Its recommendations were implemented from January 1, 2016.