8th Pay Commission Approved: Big Relief for Central Government Employees and Pensioners

In a major decision, the Union Cabinet chaired by Prime Minister Narendra Modi has approved the establishment of the 8th Central Pay Commission (CPC). The move is expected to directly benefit around 50 lakh central government employees and 69 lakh pensioners, impacting over 1.19 crore citizens across India.

Information and Broadcasting Minister Ashwini Vaishnaw announced that the Cabinet has approved the Terms of Reference (ToR) for the new pay commission. The Commission will be chaired by former Supreme Court judge Ranjana Prakash Desai, with IIM Bangalore professor Pulak Ghosh as a part-time member, and Pankaj Jain, Secretary of the Ministry of Petroleum and Natural Gas, as the Member-Secretary.

The Commission will submit its comprehensive report within 18 months of its constitution. Based on its recommendations, the new pay structure is likely to be implemented from January 1, 2026.

While preparing its report, the Commission will take into account India’s financial discipline, the need for adequate resources for welfare schemes, and the impact on both central and state finances. It will also compare compensation structures in public sector undertakings and private industries.

The Central Pay Commission is a periodic body set up approximately once every 10 years to review and recommend changes in salary, pension, and service conditions of central government employees.

If all goes as planned, millions of government employees and pensioners could see a salary and pension revision starting from January 2026, bringing much-needed relief amid inflationary pressures.