The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Terms of Reference (ToR) for the 8th Central Pay Commission (CPC).
Key Points:
The 8th CPC will be a temporary body consisting of:
- One Chairperson
- One Part-time Member
- One Member-Secretary
The Commission is required to submit its recommendations within 18 months of its formation and may issue interim reports if needed.
Focus Areas for Recommendations:
- The economic condition of the country and the need for fiscal prudence.
- Ensuring adequate resources for developmental and welfare expenditure.
- Considering the unfunded cost of non-contributory pension schemes.
- The financial impact on State Governments, which often adopt CPC recommendations.
- Comparison with emoluments, benefits, and working conditions in Central PSUs and the private sector.
Background:
View the Projected 8th CPC Pay Scale
Central Pay Commissions are set up roughly every 10 years to revise pay scales, pensions, and service conditions of Central Government employees.
The 8th CPC was announced in January 2025, and its recommendations are expected to take effect from 1 January 2026.
In essence:
The Government has formally approved the framework for the 8th CPC, paving the way for a review and revision of Central Government employees’ pay and benefits, likely effective from January 2026.
