**Executive Summary**
The document pertains to the constitution of the 8th Central Pay Commission by the Government of India. It was issued as a resolution dated 03.11.2025, in response to Lok Sabha Unstarred Question No. 212, answered on December 1, 2025. The Commission is tasked with reviewing and recommending changes to the emoluments, pay, allowances, and other benefits for various categories of Central Government employees. The commission is expected to make its recommendations within 18 months of its constitution.
**Key Points / Main Content**
* **Commission Constitution:**
* The Government of India has constituted the 8th Central Pay Commission.
* The notification for the commission's constitution is dated November 3, 2025.
* **Commission Members:**
* Chairperson: Smt. Justice Ranjana Prakash Desai
* Member (Part-Time): Prof. Pulak Ghosh
* Member-Secretary: Shri Pankaj Jain
* **Terms of Reference (Responsibilities):**
* Examine and recommend changes to emoluments, pay, allowances, and benefits for various categories of employees.
* These categories include Central Government employees, All India Services, Defence Forces, Union Territories personnel, Indian Audit and Accounts Department officers, regulatory body members, Supreme Court and High Court officers (under Union Territories), and judicial officers of subordinate courts.
* Develop an emolument structure to attract talent and promote efficiency, accountability, and responsibility.
* Examine existing bonus schemes to improve performance and productivity.
* Review existing allowances and recommend rationalization.
* Review the Death-cum-Retirement Gratuity of employees in National Pension System (NPS), and not borne on the NPS.
* Consider the economic conditions, fiscal prudence, developmental expenditure, and welfare measures.
* Consider the unfunded cost of non-contributory pension schemes.
* Assess the likely impact on State Government finances.
* Consider the emolument structure, benefits, and working conditions in Central Public Sector Undertakings and the private sector.
* **Operational Guidelines:**
* The Commission can devise its own procedure and appoint advisors, consultants, and experts.
* Ministries and Departments of the Government of India should provide information and assistance to the Commission.
* The Commission's headquarters will be in Delhi.
* **Reporting Timeline:**
* The Commission will make its recommendations within 18 months of its constitution.
* Interim reports may be submitted as needed.
**Impact Analysis**
**Stakeholder: Central Government Employees (industrial and non-industrial), All India Services, Defence Forces, Union Territories personnel, Indian Audit and Accounts Department officers, regulatory body members, Supreme Court and High Court officers (under Union Territories), judicial officers of subordinate courts**
* **Impact:** Subject to potential changes in their pay, allowances, benefits, and working conditions based on the Commission's recommendations.
* **Action Required:** Await the Commission's recommendations and any subsequent implementation by the government.
**Stakeholder: State Governments**
* **Impact:** State Finances may be impacted
* **Action Required:** Await the Commission's recommendations, assess their potential impact on state finances, and decide on adoption or modification.
**Stakeholder: Ministries and Departments of the Government of India**
* **Impact:** Required to provide information and assistance to the Commission.
* **Action Required:** Respond to information requests from the Commission promptly and accurately.
**Stakeholder: Central Public Sector Undertakings and Private Sector**
* **Impact:** Their emolument structures, benefits, and working conditions will be taken into consideration by the commission.
* **Action Required:** None specified.
**Stakeholder: Service Associations**
* **Impact:** Are requested to extend their fullest cooperation and assistance
* **Action Required:** Extend their fullest cooperation and assistance.
Key Entities Referenced
8th Central Pay Commission: Commission constituted to examine and recommend changes to the emoluments, pay, allowances, and other benefits for Central Government employees, including those in the All India Services, Defence Forces, and Union Territories.
Ministry of Finance: The primary ministry responsible for the constitution and oversight of the 8th Central Pay Commission.
All India Consumer Price Index for Industrial Workers (AICPI-IW): Used to revise rates of Dearness Allowance (DA) and Dearness Relief (DR) periodically.
Delhi: Headquarters of the 8th Central Pay Commission.
National Pension System: Pension system, including Unified Pension Scheme, whose Death-cum-Retirement Gratuity of employees borne on, is being reviewed by the commission.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
LOK SABHA
UNSTARRED QUESTION No. 212
TO BE ANSWERED ON MONDAY, DECEMBER 1, 2o25/AGRAHAYANA 10, 1947 (SAKA)
"CONSTITUTION OF 8TH CENTRAL PA COMMISSION"
212. SHRI ANAND BHADAURIA:
Will the Minister of Finance be pleased to state
a) whether the Government has issued notification for constitution of 8th Central
Pay Commission recently;
b) if so, the details thereof;
c) whether the Government proposes to merge the existing DA/DR with basic
pay as an immediate relief measure for Central Government
employees/pensioners who are facing unprecedented inflation during the last
30 years since DA,/DR given to these employees is not in consonance with the
real time retail inflation;
d)
if so, the details thereof; and
e)
if not, the reasons therefor?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANGE
I PANKAJ CHAUD
(a) to (b) Yes sir, Government has notified Resolution dated 03,11.2025 for
constitution of the Eighth Central Pay Commission. A copy of the
Notification is enclosed at Annexure-1.
(c) to (e) No proposal regarding merger of the existing Dearness Allowance with
the Basic Pay is under consideration with the Government at present. ln
order to adjust the cost of living and to protect Basic PaylPension from
erosion in real value on account of inflation, the rates of DA,/DR are
revised periodically every 6 months on the basis of All lndia Consumer
Price lndex for lndustrial Workers (AlCPl-lW released by Labour
Bureau, Ministry of Labour and Employment.
.-t
-ResolutionNo'01-01/2025-E.lll(A)dated03'11.2o25asreferred.oin,"ffi
(a) and (b) of the Lok Sabha Unstarred Question No. 212 for answer on 01 .12.2025.
^ THE GAZETTE OF INDIA: IPART I-SEC.II
MINISTRY OF FINANCE
(Department of Expendlture)
RESOLUTION
New Delhi, thc 3rd November, 2025
F, No. 0l-01202'E.IIl(A).-The Govemment of India have decided to appoint the Eighth Central Pay
Commission comprising of the following:-
Chairperson - Srnt. Justice Ranjana Prakash Desai
2. Member (Purt-Time) - Prof. Pulak Chosh
3. Member-Secretary - Shri Pankaj Jain
2. The terms of reference of the Commission will be as follows:-
a) To examine and recommend changes that are desirabte and feasible irt the emoluments including pay,
allowances, and other facilitied benefits, in cash or kind, having regard to rationalization, conlemponrry
functional requirements and the speciali"ed needs of various DepartmenB, agencies and services in
rcspect of following categories of employees:
(i) Central Government employees * industrial and non-industritl;
(ir) Personnel belonging to the All lndia Services;
(iii)
Persodnel belonging to the Defence Forces;
(iv) Personnel of*re Union Territories;
(v)
Officers and employees of the lndian Audit and Accounts Department;
(vi) Members of the regulatory bodies (excluding the RBI) sct up under the Acts ofParliament
(vii) Officers and employees of the Supreme Courl;
(viii) Officen and enrployees of the High Courts whose expenditure is borne by the Union Territories;
and
(ix) Judicial ofticem ofthe subordinate courts in the Union Tetritories.
lNoter In respect ofjudicial officers, the Commission shall adhere to the principle enunciated by, the
Supreme Court in its Judgement dated 24s August, 1993 in All [dia Judgcs' Association and Others
V/i Union of India antl Others, viz. that there shall be no link between scrvice conditions ofjudges and
administrative executive and that the service conditions ofjudges have to meet tfie special needs ofthe
judiciaryl.
(b) To work out an emolument strucrure conducive to attracting tal€nt to Govemment service, promoting
effioiency, accountability fltd responsibiliry in the wort culture'
(c) To examine the existing schemes of bonus with a view to improving perfonnance and productivity and
make recommeadations on ttre general principles, financial parameters, productivity and perfonnance'
lir:ked parameters for an appropriate incentive Scheme to reward excellence in productivity aad
performance.
(d) To review the existing allowances and conditions of their admissibility and recommend their
rationalization keeping in view the multiplicity ofallowances.'
(e)
(i) To rcview the Desth-cum-Rctircment Gratuiry of employees bomc on the Narional Pgqsion
Systern (ncluding Unified Pension Scherne) and make recomrnendations thereon.
(iD To review &e Death-cum-Rctiremcnt Gratuity and pensions of employees trot borne on the
Narional Perrsion System (including Unified Pension Scheme) and make recomrnendatione
thereon keeping in view Para (iii) below.
(0 To make recommsndations on the above, keeping in v'iew:
(i) The economic conditions in the country and the uecd for fiscal prudcncc;
(ii) The need 10 ensure that adequate resources are available for developmental expcnditure and
welfare measures;
-2-I--{F-s rl 'trrGrsrrcrq?: sIqTaT(Ur 5
(iii) The unl'uncled cost ofnon-conliburory pension schemes;
iiui The likely impact of the recommendations on the finances of the Sate Govemments which
usually adopt the recommendatioos with some modifications; and
(v) The ptevailing omolument strucfurs, benofits and working conditioos available to employees
of Central hrblic Sector Undertakings and private sector'
3. The Commissio* will 6evise its own proccdure and nray appoint such Advisors, hstitutional Consultants and
Expcrts, as it rnay considernecessary for any pirticular purpose. It may call for such information and take such evidcnce.
* it *uy consi<Ier oecessary. Miliitries andDepartmentsof Govemment of Iadia shall fumish such information and
documsrts and other assisance as may be r.qui.rd by the Commi*sion. The Government of India trusts that State
Governments, Service Associations an,i others ionc.*.d will extcnd to the Commission their fullest cooperation and
assistance.
4. The Commission will have its headqua(ers in Delhi.
5. The Commission will make irs recommendations within l8 months of the dae of its constitution- lt may
consider, ifnecessary, sending interim reports on any ofthe rnafiers as and when the recommendations are finalized-
V. VIJALNAM, SecY.
ORDER
ORDERED that the Resolution bc published io thc Gazcttc of India'
ORDERED also that a copy of the Resolution be communicated to the MisislrieyDepartments of the Governrnent of
India, State Govemments/-Administrations of Urrion Territories and all others concerned.
V. VUALNAM, SecY.
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