8th Pay Commission: Good news for central government employees! Terms of reference approved by PM Modi-led Cabinet; check details

8th Pay Commission news: In a big cheer for central government employees, PM Narendra Modi-led Union Cabinet on Tuesday approved the Terms of Reference for the 8th Central Pay Commission.In January 2025, the Government announced the formation of the 8th Central Pay Commission to review and propose revisions to the salaries and benefits of Central Government employees.

8th Pay Commission: Top things to know about Cabinet decision

According to the Cabinet release, the 8th Central Pay Commission Commission will function as a temporary entity, consisting of a Chairperson, one Part-Time Member, and one Member-Secretary. Its recommendations are due within 18 months of its establishment, with the possibility of submitting interim reports when specific recommendations are finalised. The 8th Central Pay Commission’s deliberations will consider: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; andv. The prevailing emolument structure, benefits and working conditions available to employees of Central Public Sector Undertakings and private sector.Central Pay Commissions are established periodically to assess and recommend changes to emoluments, retirement benefits and service conditions for Central Government employees.These recommendations are typically implemented on a ten-year cycle. Following this pattern, the 8th Central Pay Commission’s recommendations would take effect from January 1, 2026.