Central Government’s 8th Pay Commission
In a meeting chaired by Prime Minister Narendra Modi, the Union Cabinet on Tuesday approved the Terms of Reference (ToR) for the Eighth Central Pay Commission (8th CPC). The Commission will be headed by Justice Ranjana Prakash Desai, a former Supreme Court judge and current Chairperson of the Press Council of India. The Commission is expectant to submit its recommendations within 18 months.
Information and Broadcasting Minister Ashwini Vaishnaw stated that the exact date of implementation would be decided after the interim report is submitted. “However, it is most likely to be implemented from January 1, 2026,” he added.
According to the government’s statement, while framing its recommendations, the Commission will consider the economic conditions of the country and the need for fiscal prudence. It will also ensure that adequate resources remain available for developmental expenditure and welfare schemes. In addition, it will take into account the unfunded cost of non-contributory pension schemes and the likely impact of its recommendations on state government finances.
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While determining the pay structure, the Commission will also study the salaries, allowances, and working conditions of employees in Central Public Sector Undertakings (CPSUs) and the private sector.
The government said that the guidelines were finalized after extensive consultations with various ministries, state governments, and the staff of the Joint Consultative Machinery.
The structure of the Commission will be as follows —
- Chairperson: Justice Ranjana Prakash Desai (Former Supreme Court Judge)
- Part-time Member: Professor Pulak Ghosh (IIM Bangalore)
- Member Secretary: Pankaj Jain (Petroleum Secretary)
Usually, a new Pay Commission is constituted every 10 years. The 7th Pay Commission was formed in February 2014, and its recommendations were implemented from January 1, 2016.
According to the government, while making its recommendations, the Commission will consider not only the financial condition of the Centre but also that of the state governments, as states often adopt the recommendations with certain modifications.
The Seventh Central Pay Commission had recommended a 23.55% increase in pay, allowances, and pensions, which resulted in an additional annual financial burden of approximately ₹1.02 lakh crore on the Central Government.
