Union Cabinet Approves Terms of Reference for 8th Central Pay Commission (CPC)

The Union Cabinet, chaired by Prime Minister Narendra Modi, on 28th October approved the Terms of Reference (ToR) for the 8th Central Pay Commission.

• The 8th Central Pay Commission will be a temporary body comprising one Chairperson, one Part-Time Member, and one Member-Secretary.

imeline:

• The Commission is mandated to submit its recommendations within 18 months from its constitution.
• It may also submit interim reports on specific issues as recommendations are finalised.

Mandate / Terms of Reference:

• To review and recommend changes in:
  • Pay structure,
  • Retirement benefits, and
  • Service conditions of Central Government employees.
• To ensure equitable pay and rationalisation in accordance with inflation, productivity, and fiscal sustainability.

Expected Implementation:

• Following the decade-long pattern of previous pay commissions,
  the 8th CPC recommendations are expected to take effect from 1 January 2026.

Background:

• The Government announced the formation of the 8th CPC in January 2025.
• India has so far seen seven Central Pay Commissions since Independence:
  1st (1946), 2nd (1957), 3rd (1970), 4th (1983), 5th (1994), 6th (2006), and 7th (2016).
• Traditionally, these are constituted every 10 years to revise salaries, allowances, and pensions of government employees and pensioners.

Source: DD News