Cabinet Approves Terms of Reference for 8th Central Pay Commission
Posted on: October 28, 2025
Source: Press Information Bureau (PIB), Delhi
📌 Introduction
In a major update for Central Government employees, the Union Cabinet, chaired by Prime Minister Narendra Modi, has officially approved the Terms of Reference (ToR) for the 8th Central Pay Commission (8th CPC).
This marks a significant step forward in revising the pay, allowances, and pension structure for millions of Central Government employees and pensioners across India.
🏛️ What the PIB Notice Says
As per the PIB release dated October 28, 2025, the 8th Central Pay Commission will be a temporary body consisting of:
- One Chairperson,
- One Part-Time Member, and
- One Member-Secretary.
The Commission has been directed to submit its recommendations within 18 months from the date of its constitution. It may also issue interim reports on specific matters whenever needed.
📈 Key Focus Areas of the 8th Pay Commission
While framing its recommendations, the Commission will take into account several important factors, including:
- Economic conditions and fiscal prudence – ensuring that recommendations are financially sustainable.
- Need for developmental expenditure – maintaining a balance between pay revision and welfare spending.
- Unfunded pension liabilities – considering the financial burden of non-contributory pension schemes.
- Impact on State Governments – since states often adopt Central Pay Commission recommendations with minor changes.
- Comparison with private and PSU sectors – to ensure fairness and competitiveness in pay structures.
🕰️ Background: When Will the 8th CPC Recommendations Take Effect?
Historically, Pay Commissions are set up roughly every 10 years, and their recommendations are usually implemented from January 1 of the following year.
Following this trend, the 8th Central Pay Commission recommendations are expected to come into effect from January 1, 2026.
The Government had first announced the formation of the 8th CPC in January 2025 to review the salaries, allowances, and other benefits of Central Government employees.
Now, with the Cabinet approving the Terms of Reference, the process is officially underway — bringing employees one step closer to the next round of pay revisions.
💬 What This Means for Government Employees
The approval of ToR signals that the 8th CPC formation is now in its active phase. Once the Commission is constituted and begins its work, it will collect data, consult various stakeholders, and eventually submit its report within 18 months.
📄 Download Official PIB Notice
You can read and download the official PIB notification below:
🧾 Bottom Line
The approval of the Terms of Reference for the 8th Central Pay Commission marks a major milestone in the process that affects over 1 crore Central Government employees and pensioners.
With the Commission now set to start its work, expectations are high for a balanced and fair pay revision that reflects the country’s evolving economic landscape while ensuring fiscal responsibility.