28 October,2025 04:21 PM IST | New Delhi | mid-day online correspondent
This is a highly significant decision, said Union Minister Ashwini Vaishnaw. File Pic
The Union Cabinet, chaired by Prime Minister Narendra Modi, on Tuesday approved the Terms of Reference for the 8th Central Pay Commission, marking an important step towards reviewing and revising the pay structure and service conditions of central government employees, the ANI reported on Tuesday.
According to an official statement, the 8th Central Pay Commission will operate as a temporary body comprising a Chairperson, one Part-Time Member, and a Member-Secretary.
The Commission has been instructed to submit its recommendations within 18 months from the date of its establishment and may, if required, present interim reports on specific matters as and when they are finalised.
While preparing its recommendations, the Commission will take into account the prevailing economic conditions in the country and the need to maintain fiscal prudence, the release added.
"This is a highly significant decision. In January itself, in-principle approval was granted for the formation of the 8th Pay Commission, and in a short span of time, the Commission has now been formally constituted," stated Union Minister Ashwini Vaishnaw during a press conference in the national capital, according to the ANI.
The Commission will also assess the need to ensure adequate resources for developmental expenditure and welfare measures, consider the unfunded liabilities arising from non-contributory pension schemes, and evaluate the potential financial implications for State Governments, which generally adopt similar recommendations with suitable modifications, the news agency reported.
Furthermore, the Commission will review the existing pay structures, benefits, and working conditions of employees in Central Public Sector Undertakings as well as in the private sector.
Central Pay Commissions are periodically set up to examine matters relating to emoluments, retirement benefits, and service conditions of central government employees, and to recommend appropriate changes. Traditionally, the recommendations of each Pay Commission are implemented roughly every ten years.
The Seventh Pay Commission's recommendations came into effect on January 1, 2016, following Cabinet approval on 29 June 2016. Based on this trend, the 8th Central Pay Commission's recommendations are expected to take effect from January 1, 2026.
The Government had announced the establishment of the 8th Central Pay Commission in January 2025 to review and recommend revisions to the pay and benefits of central government employees, continuing the long-standing practice of periodic review and reform in public sector remuneration.
(with ANI inputs)
