The Union Cabinet Tuesday approved the terms of reference for the 8th Central Pay Commission.
Making this announcement at a press conference, Union Minister of Information and Broadcasting, Ashwini Vaishnaw said, “This move is expected to benefit over 1.2 crore central government employees and pensioners.”
He said the Commission will comprise one Chairperson, one Member (Part-Time), and one Member-Secretary.
The Commission will make its recommendations within 18 months of its constitution and may submit interim reports on specific matters. While making recommendations, the Commission will consider the fiscal prudence and availability of resources for developmental expenditure and welfare measures. The Commission will also assess the impact of its recommendations on state finances.
Additionally, the Commission will consider the emolument structure, 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 salaries, benefits, and service conditions of central government employees. The 8th Central Pay Commission is expected to implement its recommendations from January 1, 2026. The government had announced the formation of the Commission in January 2025.
The 8th Pay Commission is expected to significantly impact the salaries and pensions of central government employees. According to reports, the Commission may recommend a salary hike of 30-34% for central government employees.