Cabinet Approves Terms For 8th Pay Commission
The Union Cabinet has cleared the terms of reference (ToR) for the 8th Central Pay Commission, which will review the pay, allowances and pensions of central government employees and pensioners. The commission is expected to submit its report within 18 months, with revised pay scales likely to take effect from January 1, 2026.
What The Commission Will Review
The commission, chaired by former Supreme Court Judge Justice Ranjana Prakash Desai, will examine salary structures, pension schemes and service conditions. It will also consider changes in the fitment factor, allowances and retirement benefits for more than 50 lakh central government staff and millions of pensioners.
Why It Matters
This is the first major pay commission since the 7th CPC recommendations were implemented in 2016. The move is expected to bring significant financial relief to employees, though it will also add to the government’s expenditure. Pay, pensions and allowances are already projected to cost over ₹7 lakh crore in 2025-26.
Expected Impact
If implemented from January 2026, the revision may have retrospective effect, benefitting employees and pensioners alike. The recommendations are likely to influence not only central staff but also state government employees who adopt central pay scales.
