8th Central Pay Commission: Terms of Reference Approved

On 28th October 2025, the Union Cabinet chaired by Prime Minister Narendra Modi approved the Terms of Reference (ToR) for the 8th Central Pay Commission, paving the way for a comprehensive review of pay, allowances, and service conditions of Central Government employees.

Key Points

Commission Structure: The 8th Central Pay Commission will comprise one Chairperson, one Part-Time Member, and one Member-Secretary.
Mandate & Timeline: The Commission has been directed to submit its recommendations within 18 months from its constitution and may present interim reports on specific matters.
Scope of Review: It will consider economic conditions, fiscal prudence, and the availability of resources for welfare and developmental spending.
Additional Considerations: The Commission will also examine the impact on State finances, non-contributory pension liabilities, and comparative emolument structures in Central Public Sector Undertakings and the private sector.
Implementation Timeline: In line with tradition, the recommendations are expected to take effect from January 1, 2026.
Background: The Government announced the formation of the 8th Central Pay Commission in January 2025 to revise pay structures and benefits for Central Government employees.