Union Cabinet approves terms of reference for 8th Pay Commission

The Union Cabinet on Tuesday approved the Terms of Reference (ToR) for the 8th Central Pay Commission, paving the way for a review of pay, allowances, and pension structures that will impact around 50 lakh central government employees and 69 lakh pensioners across the country.

- OUR CORRESPONDENT

The recommendations are expected to take effect from January 1, 2026.

Announcing the decision, Information and Broadcasting Minister Ashwini Vaishnaw said, “The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, today approved the Terms of Reference of the 8th Central Pay Commission.” The move comes ahead of the Bihar Assembly elections scheduled between November 6 and 11.

The commission will be chaired by former Supreme Court judge Justice Ranjana Prakash Desai, who currently heads the Press Council of India. She will be joined by Petroleum Secretary Pankaj Jain as the Member Secretary and Pulak Ghosh, professor at the Indian Institute of Management (Bangalore), as the part-time member. The panel is expected to submit its final report within 18 months, along with interim reports as and when they are finalised.