Good News For 1.2-Crore Central Staff: Cabinet clears terms for 8th Pay Commission

Highlights

New Delhi: In a major move set to impact the financial lives of over 1.2 crore Central government employees and pensioners, the Union Cabinet on...

New Delhi: In a major move set to impact the financial lives of over 1.2 crore Central government employees and pensioners, the Union Cabinet on Tuesday gave its nod to the Terms of Reference (ToR) for the 8th Central Pay Commission. Announcing the decision at a press conference, Union Minister of Information and Broadcasting Ashwini Vaishnaw highlighted the wide-ranging implications of the Commission's work.

The minister said the Commission would have a chairperson, one part-time member, and a member-secretary. It has been given an 18-month timeframe from its constitution to finalise and submit its recommendations, with the flexibility to present interim reports on specific matters.

Vaishnaw said the Commission's mandate requires a balanced approach. While formulating its recommendations, it must keep in mind fiscal prudence and the availability of resources needed for developmental spending and social welfare programs. Furthermore, it will be tasked with assessing the impact of its proposals on state finances. The scope of its review will extend beyond just government posts; it will also scrutinise the emolument structure, benefits, and working conditions prevalent in Central Public Sector Undertakings (CPSUs) and the private sector for comparative analysis.

Central Pay Commissions are a periodic mechanism established to review and propose changes to the salaries, benefits, and service conditions of central government personnel.

The government had initially announced the formation of this Commission in January 2025. The recommendations of the 8th Central Pay Commission are anticipated to be implemented starting January 1, 2026.