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, formed in January 2025, is a temporary body that will consist of one Chairperson, one part-time member, and one Member-Secretary. It will make its recommendations within 18 months of its constitution. The Commission may submit interim reports, if necessary. While making recommendations, the Commission will consider the economic conditions of the country, the need for fiscal prudence, the need to ensure adequate resources for developmental expenditure and welfare measures, the unfunded cost of non-contributory pension schemes, the likely impact on the finances of State Governments, and the prevailing emolument structure, benefits, and working conditions. The recommendations of the pay commission will likely take effect from January 1, 2026.
Key Entities Referenced
8th Central Pay Commission: Temporary body formed to examine and recommend changes in salaries and benefits of Central Government employees.
Union Cabinet: Chaired by the Prime Minister, approved the Terms of Reference for the 8th Central Pay Commission.
Cabinet
Cabinet approves Terms of Reference of 8th
Central Pay Commission
Posted On: 28 OCT 2025 3:03PM 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.
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