8th Pay Commission: Terms of Reference Approved by Union Cabinet

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The Union Cabinet, chaired by PM Modi, has approved the Terms of Reference for the 8th Central Pay Commission.

What Happened

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The Commission will be led by Justice Ranjana Desai as Chairperson, with one part-time member and one member-secretary.

Who Will Head It

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The Commission will submit its recommendations within 18 months of formation, expected impact from January 1, 2026.

Timeline

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-Country’s economic conditions & fiscal prudence -Balancing developmental & welfare spending -Considering govt finance -Reviewing Govt & PSU pay structure

Key Focus Area

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Aims to revise salaries, pensions, and benefits for millions of Central Govt employees and pensioners.

What It Means for Employee

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Pay Commissions are set up every 10 years, the 8th CPC marks the next major salary revision after the 7th, with recommendations likely effective from Jan 2026.

Background & Expectation

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