NEW DELHI, November 12, 2025 — The Union Cabinet, led by Prime Minister Narendra Modi, has formally approved the Terms of Reference (ToR) and the composition of the 8th Central Pay Commission (8th CPC), initiating the long-awaited process to revise the pay, allowances, and pension structure for Central Government employees and pensioners.
The crucial decision was announced recently, providing a clear roadmap for the Pay Commission, which is typically constituted every ten years.
Key Details of the Commission
| Feature | Details |
| Chairperson | Justice Ranjana Prakash Desai (Former Supreme Court Judge) |
| Members | Professor Pulak Ghosh (Part-Time Member) and Shri Pankaj Jain (Member-Secretary) |
| Mandate | To examine and recommend changes to emoluments, allowances, and service conditions. |
| Report Submission | Recommendations must be submitted within 18 months of its constitution. |
| Expected Implementation | The revised structure is generally anticipated to take effect from January 1, 2026. |
Scope of Review
The Commission’s mandate is wide-ranging, instructing it to keep several factors in mind, including:
- The need for fiscal prudence and prevailing economic conditions.
- Ensuring adequate resources for developmental and welfare programs.
- Reviewing the emoluments and benefits of Central Government employees, personnel of the All India Services, Defence Forces, and Union Territories, among others.
What This Means for Employees
The approval of the ToR is the most significant step forward since the announcement of the 8th CPC. While the exact salary hike figures are still speculative—with projections suggesting a potential increase driven by a revised Fitment Factor (speculated to range between 1.83 and 2.46) and a potential hike in minimum pay—the constitution of the panel marks the formal beginning of the revision process.
The new recommendations are set to benefit nearly 50 lakh central government employees and over 69 lakh pensioners nationwide. Employees and pensioners will now closely watch the Commission’s progress over the next year and a half as it deliberates on the new pay matrix.