The Union Cabinet on Tuesday approved the Terms of Reference of 8th Central Pay Commission. The cabinet meeting was chaired by the Prime Minister Narendra Modi.
Union Minister Ashwini Vaishnaw said, “The composition, the terms of reference, and the time period of the 8th Central Pay Commission have been approved by the Prime Minister. This is a very important decision. The Commission’s recommendation will cover nearly 50 lakh central government employees, including Defence Services Personnel, and nearly 69 lakh pensioners.”
#WATCH | Delhi: The Union Cabinet, chaired by PM Modi, approved the Terms of Reference of the 8th Central Pay Commission.
— ANI (@ANI) October 28, 2025
Union Minister Ashwini Vaishnaw says, "The composition, the terms of reference, and the time period of the 8th Central Pay Commission have been approved by… pic.twitter.com/srQ5UYMk9N
According to the PIB, the 8th Central Pay Commission will be a temporary panel and it will comprise of one Chairperson; One Member (Part Time) and one Member-Secretary. The commission will have to submit 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 finalised.
While making the recommendations the Commission will keep in view the followings points:
i. The economic conditions in the country and the need for fiscal prudence;
ii. The need to ensure that adequate resources are available for developmental expenditure and welfare measures;
iii. The unfunded cost of non-contributory pension schemes;
iv. The likely impact of the recommendations on the finances of the State Governments which usually adopt the recommendations with some modifications; and
v. The prevailing emolument structure, benefits and working conditions available to employees of Central Public Sector Undertakings and private sector.
The Central Pay Commissions are periodically constituted to go into various issues of 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 after a gap of every ten years. Going by this trend, the effect of the 8th Central Pay Commission recommendations would normally be expected from 01.01.2026.
Centre had announced 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.
