The Union cabinet on Tuesday approved the Terms of Reference (ToR) of 8th Pay Commission, which will revise the salaries of nearly 50 lakh central government employees. Former Supreme Court judge Ranjana Prakash Desai will be heading the Commission as the chairperson.
Eighth Pay panel will submit recommendations within 18 months and it is likely to come into effect from January 1, 2026, I&B minister Ashwini Vaishnaw said on Tuesday at a Cabinet briefing.
Also Read | 8th Pay Panel terms approved: When will new salary be known, how many to benefit, by how much - FAQs
In January, the Cabinet approved setting up the 8th Pay Commission to revise salaries of of central government employees and allowances of about 69 lakh pensioners.
While Justice Ranjana Prakash Desai will head the Commission, professor Pulak Ghosh will be the member, and Pankaj Jain the member-secretary of the same.
What Cabinet announced on 8th Pay Commission
{{/usCountry}}While Justice Ranjana Prakash Desai will head the Commission, professor Pulak Ghosh will be the member, and Pankaj Jain the member-secretary of the same.
What Cabinet announced on 8th Pay Commission
{{/usCountry}}Announcing decisions at the Cabinet briefing on Tuesday, Ashwini Vaishnaw said the ToR has been finalised after consultations with various ministries, state governments and staff side of joint Consultative machinery
The government informed in Parliament in July it had sought inputs from major stakeholders, including the defence and home ministries, the department of personnel and training, as well as states, on setting up the 8th Central Pay Commission.
Also Read | 8th Pay Commission: By how much will salaries rise for central govt employees?
Asked when the revised pay scales will be implemented for the employees and pensioners, Union Minister of State for Finance Pankaj Chaudhary had said back then that the implementation would be taken up "once the recommendations are made by the 8th CPC and are accepted by the government".
The pay commission is usually constituted by Centre every 10 years to revise the remuneration of government employees.
The 7th Pay Commission was constituted in February 2014 and its recommendations were implemented from January 1, 2016.
The 8th Pay Commission is due for implementation on January 1, 2026.
To compensate central government employees for erosion in the real value of their salaries on account of inflation, dearness allowance (DA) is disbursed and the rate of DA is revised periodically every six months on the basis of the rate of inflation.