Cabinet Clears Terms Of Reference For 8th Pay Commission; Implementation Expected From January 2026

The Union Cabinet on Tuesday (28 October) adopted the Terms of Reference (ToR) for the 8th Pay Commission, which would evaluate and amend the wages of almost 50 lakh central government employees as well as the allowances of approximately 69 lakh pensioners, reported Hindustan Times.

Ranjana Prakash Desai, a former Supreme Court judge, will chair the commission.

Information and Broadcasting Minister Ashwini Vaishnaw announced the decision during a Cabinet briefing, saying the Eighth Pay panel will give recommendations within 18 months, and it is expected to go into effect on 1 January, 2026.

He noted that the Terms of Reference had been finalised after meetings with several ministries, state governments, and the Joint Consultative Machinery's staff.

The Cabinet had earlier, in January, approved the setting up of the 8th Pay Commission.

Along with Justice Desai as chairperson, Professor Pulak Ghosh has been appointed as a member and Pankaj Jain as the member-secretary.

In July, the government informed Parliament that it had sought inputs from key stakeholders, including the defence and home ministries, the Department of Personnel and Training, and state governments, before finalising the Commission’s framework.

When asked about the timeline for implementing the revised pay scales, Minister of State for Finance Pankaj Chaudhary had stated that the decision would be taken “once the recommendations are made by the 8th CPC and are accepted by the government.”

The 7th Pay Commission, established in February 2014, took effect from 1 January, 2016. The upcoming 8th Pay Commission is scheduled to be implemented from 1 January, 2026.

The Dearness Allowance (DA) will continue to be revised twice a year to offset inflation’s impact on employees’ earnings.

Please click here to add Swarajya as your preferred and trusted news source on Google

Also Read: Election Commission Issues Notice To Prashant Kishor Over Dual Voter Enrolments