The Union Cabinet approved the terms of reference (ToR) for the 8th Pay Commission on Tuesday, benefiting approximately 5 million Central government employees and 6.9 million pensioners, while also impacting state government staff salaries. This commission will be led by former Supreme Court judge Ranjana Prakash Desai and is expected to implement recommendations effective from January 1, 2026. The commission will submit its main report within 18 months and interim reports as they are finalized.
This announcement precedes the Bihar state elections scheduled from November 6 to 11. An official statement indicated that the commission will assess the current pay structure, benefits, and working conditions for employees in Central public sector undertakings and the private sector when making its recommendations.
In drafting its suggestions, the commission will evaluate the country’s economic climate, emphasizing the importance of fiscal responsibility and the availability of resources for developmental and welfare projects. Additionally, it will consider the unfunded costs of non-contributory pension schemes and the potential financial impact on state governments, which tend to adopt these recommendations with modifications.
Information and Broadcasting Minister Ashwini Vaishnaw stated, “The Union Cabinet, chaired by Prime Minister Narendra Modi, today approved the terms of reference of the 8th Central Pay Commission.” The commission will investigate and recommend adjustments in salaries and benefits for Central government employees, including defense personnel, totalling nearly 5 million individuals and 6.9 million pensioners.
About nine months after granting in-principle approval for establishing the 8th Pay Commission, the Cabinet finalized the ToR following consultations with various ministries and state governments. Under Desai’s leadership, the commission will include part-time member Pulak Ghosh, a professor at IIM Bangalore, and Pankaj Jain, the Petroleum Secretary, as member secretary.
Desai, also the chairman of the Press Council of India, has chaired significant government panels, including the Delimitation Commission for Jammu and Kashmir and the committee for drafting Uttarakhand’s Uniform Civil Code (UCC). This marks her fourth major role post-retirement from the Supreme Court.
Regarding the commission’s implementation date, Vaishnaw added, “The specific date will be decided once the interim report comes in… But mostly it should be January 1, 2026.” Typically, pay commission recommendations are enacted every ten years, situating the expected impact of this commission’s recommendations from the aforementioned date, as stated by the government.
The 7th Pay Commission was established in February 2014, with its recommendations taking effect from January 1, 2016. To offset inflation’s impact on the real value of salaries, Central government employees receive a dearness allowance (DA), which is adjusted every six months based on inflation rates.
Original Source: https://assamtribune.com/national/cabinet-clears-tor-for-8th-pay-commission-report-due-in-18-months-1596076
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Publish Date: 2025-10-29 11:34:00
