The Union Cabinet chaired by Prime Minister Narendra Modi today approved the terms of reference of the 8th Central Pay Commission.
The 8th Central Pay Commission will be a temporary body. The Commission will consist of a Chairperson; one Member (part-time) and one Member-Secretary. It will make its recommendations within 18 months from the date of its constitution. It may, if necessary, consider sending interim reports on any matter while finalising the recommendations. While making recommendations, the Commission will take into account the following:
i. Economic conditions in the country and the need for financial literacy;
ii. The need to ensure that adequate resources are available for development expenditure and welfare measures;
iii. Unfunded cost of non-contributory pension schemes;
iv. The likely impact of the recommendations on the finances of the State Governments which generally adopt the recommendations with some modifications; and
v. Current pay structure, benefits and working conditions available to employees of Central Public Sector Undertakings and Private Sector.
Central Pay Commissions are constituted from time to time to look into various issues of pay structure, retirement benefits and other service conditions of Central Government employees and make recommendations regarding necessary changes in them. Generally, the recommendations of Pay Commissions are implemented after an interval of every ten years. In view of this trend, the recommendations of the 8th Central Pay Commission are generally expected to come into effect from 01.01.2026.
The government had announced the constitution of the 8th Central Pay Commission in January 2025 to examine and recommend changes in the salaries and other benefits of central government employees*
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