The commission will comprise one chairperson; one member (part time) and one member-secretary. It will make its recommendations within 18 months of the date of its constitution.
New Delhi: The Union Cabinet on Tuesday approved the terms of reference (ToR) of the 8th Pay Commission, which is likely to be implemented with effect from January 1, 2026. The commission will make its recommendations within 18 months of the date of its constitution.
Supreme Court former judge Ranjana Prakash Desai will chair the panel, which will submit an interim report to the government.
The panel will cover about 50 lakh Central government employees and 69 lakh pensioners. Briefing the media, information and broadcasting minister Ashwini Vaishnaw said that the Union Cabinet, chaired by Prime Minister Narendra Modi, had approved the terms of reference.
IIM Bangalore professor Pulak Ghosh has been named part-time member, while petroleum secretary Pankaj Jain will be the member secretary.
While making the recommendations, the commission will keep in view the economic conditions in the country, the need for fiscal prudence and the need to ensure that adequate resources are available for developmental expenditure and welfare measures. The unfunded cost of non-contributory pension schemes, the likely impact of the recommendations on the finances of the state governments which usually adopt the recommendations with some modifications, and the prevailing emolument structure, benefits and working conditions available to employees of Central public sector undertakings and the private sector.
Asked about the date of implementation of the pay panel award, Vaishnaw said, "The specific date will be decided once the interim report comes in... But mostly it should be January 1, 2026."
The government had announced the formation of the 8th Central Pay Commission in January 2025 to examine and recommend changes in the salaries and other benefits of Central government employees. The Union Cabinet had in January 2025 accorded an in-principle approval for setting up the 8th Pay Commission.
The Central Pay Commissions are periodically constituted to go into various issues of emoluments structure, retirement benefits and other service conditions of Central government employees and to make recommendations on the changes required thereon. Usually, the recommendations of the pay commissions are implemented after a gap of every 10 years.
