The Union Cabinet, chaired by Prime Minister Narendra Modi, on Tuesday approved the Terms of Reference (ToR) for the 8th Central Pay Commission (CPC).
According to an official release, the Commission will be a temporary body comprising a Chairperson, one Part-Time Member, and a Member-Secretary. It has been mandated to submit its recommendations within 18 months from the date of its constitution and may issue interim reports if necessary.
While framing its recommendations, the 8th CPC will consider the country’s economic conditions and the need for fiscal prudence, ensure adequate resources for developmental and welfare expenditure, take into account the unfunded cost of non-contributory pension schemes, assess the likely impact on state finances, and examine the existing pay structure and working conditions in central public sector undertakings and the private sector.
The Central Pay Commissions are periodically constituted to review the salary structure, retirement benefits, and service conditions of Central Government employees. Typically, recommendations are implemented every ten years.
Following this trend, the recommendations of the 8th CPC are expected to take effect from January 1, 2026. The government had earlier announced the formation of the 8th Central Pay Commission in January 2025 to review and recommend revisions in salaries and benefits for Central Government employees.