8th Central Pay Commission

• 29 Oct 2025

Source: IE

The Union Cabinet has approved the Terms of Reference (ToR) of the 8th Central Pay Commission. 

• Pay Commission (PC): A new PC is established every 10 years under the Department of Expenditure, Ministry of Finance.
  • PC determines the salary, allowances, and pensions of Central government employees by assessing both monetary and non-monetary benefits, taking into account inflation, cost of living, and the need for parity and fairness in compensation.
  • Usually, a retired Supreme Court judge heads the PC.  Its recommendations are often adopted by state-owned organizations as well.
  • The 8th Pay Commission will be chaired by Justice Ranjana Prakash Desai. The Commission will submit its report within 18 months and may issue interim recommendations on specific matters before completion.
• ToR: It serves as a blueprint outlining the mandate, scope, and timelines for the 8th Pay Commission.
• Implementation Date: 8th Pay Commission recommendations are expected to take effect retrospectively from 1st January, 2026, continuing the 10-year pay revision cycle tradition.
• Economic Impact: Implementation leads to higher consumption and economic growth, improving the quality of life of employees and pensioners.
  • Over 49 lakh Central government employees and 65 lakh pensioners will benefit under the 8th CPC.
• Past Precedent: 7th Pay Commission (2016), chaired by Justice Ashok Kumar Mathur, recommended a 23.55% overall hike. 

Read more: 8th Pay Commission