8th Pay Commission: Cabinet Approves Terms Of Reference, Panel To Submit Report In 18 Months | Business News

The 8th Pay Commission

8th Pay Commission Update: The Union Cabinet on Tuesday approved the Terms of Reference (ToR) for the 8th Central Pay Commission (CPC), which will revise the salaries of nearly 50 lakh central government employees and benefits for about 69 lakh pensioners.

Announcing the decision after the Cabinet meeting, Union Minister Ashwini Vaishnaw said the ToR had been finalised following extensive consultations with various ministries, state governments, and the staff side of the Joint Consultative Machinery. The Commission is expected to submit its recommendations within 18 months from the date of its constitution.

Earlier, in January, the Cabinet had approved the formation of the 8th Pay Commission to review and recommend changes to the pay structure, allowances, and pension benefits for central government employees and retirees.

The government had informed Parliament in July that it sought inputs from key stakeholders, including the defence and home ministries, the Department of Personnel and Training (DoPT), and state governments, before finalising the ToR.

Responding to a query on the timeline for the implementation of revised pay scales, Minister of State for Finance Pankaj Chaudhary had clarified that the process would commence “once the recommendations are made by the 8th CPC and accepted by the government.”

The Central Pay Commission is typically set up every ten years to review the remuneration structure of government employees. The 7th Pay Commission, constituted in February 2014, had its recommendations implemented from January 1, 2016.

Following this trend, the 8th Pay Commission’s recommendations are expected to come into effect from January 1, 2026. Meanwhile, central government employees continue to receive dearness allowance (DA) to offset inflationary pressures, with the DA rate revised every six months based on the inflation rate.