Home India Ministry of Finance Cabinet approves Terms of Reference of 8th Central Pay Commi...
Date: 2025-10-28 Category: Not Applicable State: Union Government Country: India

Cabinet approves Terms of Reference of 8th Central Pay Commission

Issued by Ministry of Finance · Not Applicable

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Executive Summary & Key Takeaways

On October 28, 2025, the Union Cabinet, chaired by Prime Minister Shri Narendra Modi, approved the Terms of Reference of the 8th Central Pay Commission. The 8th Central Pay Commission, a temporary body, will consist of one Chairperson, one part-time member, and one Member-Secretary. It is expected to submit its recommendations within 18 months from the date of constitution and may provide interim reports. The Commission must consider the economic conditions, fiscal prudence, resource availability for developmental and welfare measures, non-contributory pension schemes, impact on State finances, and existing emolument structures. The Government announced the 8th Central Pay Commission in January 2025 to examine and recommend changes in salaries and other benefits for Central Government employees. The recommendations of the 8th Central Pay Commission are expected to have an effect from January 1, 2026. This announcement was posted by PIB Delhi at 3:04 PM.

Key Entities Referenced

8th Central Pay Commission: A temporary body constituted to examine and recommend changes in the salaries and benefits of Central Government employees. Ministry of Finance: The Union Government ministry associated with the announcement regarding the 8th Central Pay Commission.
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Ministry of Finance Cabinet approves Terms of Reference of 8th Central Pay Commission Posted On: 28 OCT 2025 3:04PM by PIB Delhi The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, today approved the Terms of Reference of 8th Central Pay Commission. The 8th Central Pay Commission will be a temporary body. The Commission will comprise of one Chairperson; One Member (Part Time) and one Member-Secretary. It will make 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 finalized. While making the recommendations the Commission will keep in view the followings: 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. Background: 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. The Government 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. *** MJPS(Release ID: 2183290) Visitor Counter : 6869 Read this release in: Tamil , Urdu , Marathi , ही , Bengali , Bengali-TR , Punjabi , Gujarati , Malayalam

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