8th Pay Commission Latest News: Terms of Reference Approved

The 8th Pay Commission's Terms of Reference (ToR), which will update the pay of about 50 lakh central government employees, has finally been approved by the Union cabinet. The Commission will be chaired by former Supreme Court judge Ranjana Prakash Desai.

I&B minister Ashwini Vaishnaw stated at a Cabinet briefing on Tuesday that the Eighth Pay panel will give recommendations within 18 months and that it is expected to take effect on January 1, 2026.

8th Pay Commission Approved 

The Cabinet authorized the establishment of the 8th Pay Commission in January with the goal of updating the pay and benefits of around 69 lakh pensioners and central government employees.

Members of the 8th Pay Commission

The Commission will be led by Justice Ranjana Prakash Desai, with Professor Pulak Ghosh serving as a member and Pankaj Jain serving as the member-secretary.

Government Finalized Terms of Reference (ToR)

Ashwini Vaishnaw announced choices during the Cabinet briefing on Tuesday, stating that the ToR has been finalized following deliberations with staff members of the joint consultative machinery, state governments, and several ministries.

In July, the administration told Parliament that it had consulted with states, the Department of Personnel and Training, the defense and Home Ministries, and other key stakeholders regarding the establishment of the 8th Central Pay Commission.

Implementation Timeline of the 8th Pay Commission

Union Minister of State for Finance Pankaj Chaudhary had previously stated that the implementation will begin "once the recommendations are made by the 8th CPC and are accepted by the government," when asked when the updated pay scales for employees and pensioners would be put into effect.

The Center typically appoints the Pay Commission every ten years to update government employees' compensation.

History of Pay Commissions in India

Established in February 2014, the 7th Pay Commission's recommendations went into effect on January 1, 2016.

When Will the 8th Pay Commission Come Into Effect?

The 8th Pay Commission is scheduled to go into effect on January 1st, 2026.

Dearness allowance (DA) is paid to central government employees to make up for the decline in the real value of their salary due to inflation; the rate of DA is updated every six months based on the rate of inflation.