New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the guidelines for setting up the 8th Central Pay Commission, paving the way for a major salary revision for around 50 lakh central government employees and 69 lakh pensioners. The move is also expected to influence pay structures across several state governments.
The Commission has been tasked with submitting its final report within 18 months. Information and Broadcasting Minister Ashwini Vaishnaw said that the date of implementation will be decided after the interim report is submitted, adding that it is likely to take effect from January 1, 2026.
According to the government, the 8th Pay Commission will consider multiple economic and fiscal factors while preparing its recommendations. These include maintaining fiscal prudence, ensuring adequate funds for developmental and welfare programmes, assessing the burden of non-contributory pension schemes, and evaluating the impact on state government finances.
The Commission will also review the prevailing pay structures and service conditions of employees in Central Public Sector Undertakings and the private sector to ensure a balanced and equitable approach.
The guidelines were framed after consultations with various ministries, state governments, and representatives of the Joint Consultative Machinery, which represents central government employees.
The Commission will be chaired by former Supreme Court judge Ranjana Prakash Desai. Professor Pulak Ghosh from the Indian Institute of Management, Bangalore, will serve as a part-time member, while Petroleum Secretary Pankaj Jain will act as the Member Secretary.
Pay commissions are typically constituted once every decade. The previous, 7th Central Pay Commission, was established in February 2014, and its recommendations came into force on January 1, 2016.
The approval of the 8th Pay Commission guidelines marks the beginning of a process eagerly awaited by millions of government employees and pensioners, who are anticipating salary revisions and structural improvements in benefits and allowances.
