The long wait for the 8th Central Pay Commission (CPC) has finally come to an end. The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the Terms of Reference (ToR) for the 8th Central Pay Commission.
Composition of the Commission
Justice Smt. Ranjana Prakash Desai, Former Judge, Supreme Court of India — Chairperson
Professor Pulak Ghosh, Professor, Indian Institute of Management, Bangalore — Part-time Member
Shri Pankaj Jain, Secretary, Ministry of Petroleum & Natural Gas — Member-Secretary
Key Features
a) The 8th CPC will be a temporary body and will submit its report within 18 months from the date of constitution.
b) It may also submit interim reports on specific subjects whenever ready.
c) While making its recommendations, the Commission will keep in view:
1. The economic conditions in the country and the need for fiscal prudence.
2. Ensuring that adequate resources remain available for developmental and welfare expenditure.
3. The unfunded cost of non-contributory pension schemes.
4. The likely financial impact on State Governments that usually adopt CPC recommendations.
5. The prevailing emolument structure and working conditions in Central PSUs and the private sector.
Background
The Central Pay Commissions are constituted periodically to review and recommend changes in the emoluments, retirement benefits, and service conditions of Central Government employees. Traditionally, Pay Commission recommendations are implemented every ten years.
Going by this trend, the 8th CPC recommendations are expected to take effect from 1st January 2026, though the rollout may occur in late 2026 or early 2027 as per current estimates.
The Government had earlier announced formation of the 8th CPC in January 2025 to examine and recommend appropriate revisions in salaries and benefits for Central Government employees and pensioners.
