The Union Cabinet has set the ball rolling with regards to the implementation of the 8th Central Pay Commission (CPC) by approving its Terms of Reference (ToR) on Tuesday.
The Commission, which is in charge of deciding the pay structure and retirement benefits of central government employees, will likely be implemented from January 1, 2026.
On the date of implementation of the pay panel award, I&B Minister Ashwini 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 CPC back in January, 2025, and directed it to examine and recommend changes in the salaries and other benefits of central government employees.
The panel’s recommendations will benefit about 50 lakh central government employees and 69 lakh pensioners, as per government data.
Also Read: Highs and hikes: What the 8th Pay Commission entails
What does the Cabinet release say?
The Commission will comprise one chairperson; one part-time member and one member-secretary. IIM (Bangalore) Professor Pulak Ghosh has been named as the part-time member, while Petroleum Secretary, Pankaj Jain, will be the Member Secretary.
The panel, to be chaired by former Supreme Court judge Ranjana Prakash Desai, will function as a temporary entity and submit an interim report to the government on any of the issues under its purview as and when the recommendations that is asked to make are finalised.
It is to make its recommendations within 18 months of the date of its constitution.
The 8th CPC would be making recommendations on several key issues, keeping in mind factors such as the economic conditions in the country, the need for fiscal prudence, the need to ensure that ample resources are available for expenditure meant for developmental schemes, the unfunded cost of non-contributory pension schemes, the impact of its recommendations on the states’ finances, the current emolument structure, and the benefits and working conditions of central public sector undertakings and the private sector.
The panel’s recommendations are typically implemented on a 10-year cycle.
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