On Tuesday, the Union Cabinet sanctioned the Terms of Reference (ToR) for establishing an 8th Central Pay Commission that will revise the remuneration of nearly 50 lakh central government employees and the allowances of around 69 lakh pensioners. Information and Broadcasting Minister Ashwini Vaishnaw, announced in a press conference that the commission will submit its recommendations in 18 months. The impact is expected to take effect on January 1, 2026, according to the Cabinet.
Vaishnaw elaborated on how the ToR was ascertained by thoroughly consulting various ministries, states, and representatives of the Joint Consultative Machinery. He explained that the central government had previously sought feedback from several of the critical stakeholders, including the defense and home ministries, the Department of Personnel and Training, and various state governments.
The 8th Pay Commission will be implementing the recommendations of the 7th Pay Commission, which was constituted in February 2014 with a modified pay scale put in place on January 1, 2016. Pay commissions are generally established every 10 years for reassessing the compensation of government employees on the basis of the rate of inflation and the cost of living. In the meantime, the government periodically revises the dearness allowance (DA) every six months based on the rate of inflation.
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