SRINAGAR: The Union Cabinet, chaired by Prime Minister Narendra Modi, today approved the Terms of Reference (ToR) for the 8th Central Pay Commission, paving the way for a comprehensive review of salaries, allowances, and service conditions of Central Government employees.
According to the Cabinet decision, the 8th Central Pay Commission will be constituted as a temporary body comprising a Chairperson, one part-time Member, and a Member-Secretary. The Commission will submit its recommendations within 18 months of its constitution and may, if necessary, present interim reports on specific matters as and when they are finalised.
While formulating its recommendations, the Commission has been asked to consider the overall economic situation in the country and the need for fiscal prudence, ensuring that adequate resources remain available for developmental and welfare expenditure. It will also take into account the unfunded cost of non-contributory pension schemes, the financial implications for State Governments, which generally adopt Central pay revisions with some modifications, and the prevailing emolument structure and working conditions in Central Public Sector Undertakings and the private sector.
The periodic constitution of Central Pay Commissions has been a regular feature of government service reforms, with each commission examining pay structures, retirement benefits, and service conditions of Central employees. Traditionally, these Commissions are constituted roughly every ten years. Based on this pattern, the implementation of the 8th Central Pay Commission’s recommendations is expected to take effect from January 1, 2026.
The Government had earlier announced the setting up of the 8th Central Pay Commission in January 2025 to review and recommend revisions in pay and benefits for Central Government employees, continuing the practice established since the First Pay Commission was formed in 1946.
