Cabinet nod to 8th Pay Commission's terms of reference; 50 lakh central employees to benefit

The Union Cabinet on Tuesday approved the terms of reference (ToR) of the 8th Pay Commission, which will revise the salary of nearly 50 lakh central government employees and benefit 69 lakh pensioners.

The recommendations of the commission, which will be headed by former Supreme Court judge Ranjana Prakash Desai, are likely to come into effect from January 1, 2026, Information & Broadcasting Minister Ashwini Vaishnaw told reporters.

IIM-Bangalore Professor Pulak Ghosh will be the part-time member and Petroleum Secretary Pankaj Jain the member-secretary of the commission, which will submit its recommendations within 18 months.

Announcing the Cabinet decisions, Vaishnaw said the terms of reference had been finalised after consultations with various ministries, state governments and staff side of the joint consultative machinery.

The 8th Pay Commission may consider, if necessary, sending interim reports on any of the matters as and when the recommendations are finalised.

While making the recommendations, the commission will keep in view the economic conditions in the country and the need for fiscal prudence. It will also take into account the likely impact of the recommendations on the finances of the state governments which usually adopt them with some modifications.

The prevailing emolument structure, benefits and working conditions available to employees of Central PSUs and the private sector will also be taken into consideration by the commission.

The pay commission is usually constituted by the Centre every 10 years to revise the remuneration of government employees. The 7th Pay Commission was constituted in February 2014 and its recommendations were implemented from January 1, 2016.