8th Pay Commission Big Update: Cabinet approves terms of reference, panel to submit report soon

The Cabinet on Tuesday approved the terms of reference (ToR) of the 8th Central Pay Commission (CPC), which will revise salaries of nearly 50 lakh central government employees and allowances of 65 lakh pensioners.

According to the information available, the 8th Central Pay Commission will be a temporary body and comprise one chairperson, a part-time member and one member-secretary.  

Composition approved by the Cabinet

As per the composition approved by the Cabinet, former Supreme Court judge Ranjana Prakash Desai will act as the chairperson. IIM (Bangalore) Professor Pulak Ghosh has been named as the part-time member, while Petroleum Secretary Pankaj Jain will be the Member Secretary.

Asked about the date of implementation of the pay panel award, I&B Minister Ashwini Vaishnaw said, “The specific date will be decided once the interim report comes in…But, mostly it should be January 1, 2026.”

The panel will make its recommendations within 18 months of its constitution. 

While making the recommendations, the Commission will keep in view the following:

1. The economic conditions in the country and the need for fiscal prudence.
2. The need to ensure that adequate resources are available for developmental expenditure and welfare measures.
3. The unfunded cost of non-contributory pension schemes.
4. The likely impact of the recommendations on the finances of the State Governments which usually adopt the recommendations with some modifications.
5. The prevailing emolument structure, benefits and working conditions available to employees of Central Public Sector Undertakings and private sector.

“It may consider, if necessary, sending interim reports on any of the matters as and when the recommendations are finalised,” the government said.

The term of the 7th Pay Commission will end in 2026.

Since 1947, seven Pay Commissions have been constituted, with the last one implemented in 2016. Usually, every 10 years, the central government constitutes a pay commission to revise the remuneration of its employees. The 7th Pay Commission was constituted in 2014, and its recommendations were implemented on January 1, 2016.