Cabinet approves terms of reference for 8th Pay Commission
Cabinet approves terms of reference for 8th Pay Commission
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Cabinet approves terms of reference for 8th Pay Commission

Shishir Sinha 🕒︎ 2025-11-05

Copyright thehindubusinessline

Cabinet approves terms of reference for 8th Pay Commission

Nearly 9 months after giving in-principle approval, the Government on Tuesday announced the composition and terms of reference for the 8th Pay Commission. Going by this trend, the effect of the 8th Central Pay Commission recommendations would normally be expected from January 1, 2026. The Commission will be headed by former judge of the Supreme Court, Ranjana Prakash Desai, while ot it will have Pulak Ghosh (Professor, IIM, Bangalore) as a part-time member and Oil Secretary Pankaj Jain as Member Secretary. “It will make its recommendations within 18 months of the date of its constitution. It may consider, if necessary, sending interim reports on any of the matters as and when the recommendations are finalized,” a government statement said. Desai is the chairman of the Press Council of India. She has headed major government panels in the past, including the Delimitation Commission for the Union Territory of Jammu and Kashmir, and the expert committee on drafting of Uttarakhand’s Uniform Civil Code (UCC). This will be her fourth major assignment after retiring as a Supreme Court judge. Panel to submit report in 18 months; rollout likely from Jan 2026 On the date of implementation of the pay panel award, Information & Broadcasting 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 7th Pay Commission was constituted in February 2014. Its recommendations were implemented from January 1, 2016. While making recommendations, the Commission will keep in mind the country’s economic conditions and the need for fiscal prudence. Terms of Reference (ToR) address the need to ensure adequate resources are available for developmental expenditure and welfare measures, as well as for the unfunded costs of non-contributory pension schemes. At the same time, the Commission will consider the likely impact of the recommendations on the finances of the State Governments, which usually adopt the recommendations with some modifications. It will also take into account the prevailing emoluments structure, benefits, and working conditions available to employees of Central Public Sector Undertakings and the private sector. Recommendations to benefit 50 lakh employees and 69 lakh pensioners The committee is periodically constituted to examine various issues related to the emoluments structure, retirement benefits, and other service conditions of Central Government employees, and to make recommendations on the changes required thereon. Usually, the recommendations of the pay commissions are implemented every ten years. The Government had announced the formation of the 8th Central Pay Commission in January 2025 to examine and recommend changes in the Salaries and other benefits of Central Government employees. The recommendations of the 8th Pay Commission will benefit about 50 lakh central government employees and 69 lakh pensioners, a government statement said after the Union Cabinet meeting, chaired by Prime Minister Narendra Modi. Published on October 28, 2025

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