The Union Cabinet has approved the Terms of Reference (ToR) for the 8th Central Pay Commission (CPC), which will determine the pay structure and retirement benefits of central government employees. The government made the announcement on Tuesday, October 28. The decision follows the Centre’s earlier announcement in January 2025 to set up the 8th CPC to review and recommend revisions in salaries, allowances, and other service conditions for central government staff.
According to the government, the 8th Pay Commission will comprise one chairperson, one part-time member, and one member-secretary, and is expected to submit its recommendations within 18 months from the date of its constitution. The Commission has also been empowered to submit interim reports on specific issues if required, allowing for timely recommendations on pressing matters.
While framing its proposals, the 8th CPC will consider a range of factors, including the country’s economic situation, the need for fiscal prudence, availability of funds for developmental and welfare programmes, and the financial impact on both central and state governments. It will also examine the existing pay structures and benefits of employees in central public sector undertakings and the private sector to ensure balanced and sustainable recommendations.
