R ARIVANANTHAM
NEW DELHI, OCT 28
In a major move for India’s central workforce, the Union Cabinet on Tuesday approved the Terms of Reference (ToR) for the 8th Central Pay Commission (8th CPC), to be headed by retired Supreme Court judge Justice Ranjana Prakash Desai. The panel will recommend revisions to pay, allowances and pensions for central government employees and pensioners.
Cabinet approved Terms of Reference of 8th Central Pay Commission.
✅ To make recommendations within 18 months of constitution.
✅ Will cover ~50 lakh Central Government employees and ~69 lakh pensioners. pic.twitter.com/is12kPgMH7— Ashwini Vaishnaw (@AshwiniVaishnaw) October 28, 2025
According to the official statement, the Commission’s award is expected to take effect from January 1 2026, and will cover approximately 50 lakh employees and 69 lakh pensioners. The ToR stipulate that an interim report will precede the final report, which must be submitted within 18 months of the Commission’s constitution.
Smt. Justice Ranjana Prakash Desai, former Supreme Court Judge, appointed as Chairperson of the 8th Central Pay Commission. First woman ever to head a Central Pay Commission#Ranjanaprakashdesai #8thpaycommission pic.twitter.com/eYvwHMlspe
— 8th pay commission (@8thpaycommision) October 28, 2025
The panel’s members include Prof. Pulak Ghosh (IIM Bangalore) as part-time member and Pankaj Jain, Petroleum Secretary, as Member-Secretary.
- Panel to revise salaries and pensions for 50 lakh central employees and 69 lakh pensioners, report due within 18 months
- Government sets implementation target as January 1 2026; staff-side unions and trade federations voice cautious optimism
- Justice Desai appointed chair, Prof. Pulak Ghosh and Secretary Pankaj Jain among members
“The specific date will be decided once the interim report comes in… But mostly it should be January 1, 2026,” said Union Minister Ashwini Vaishnaw (I&B).
Unions weigh in
Staff-side unions and trade federations welcomed the decision, while urging a robust fitment factor and minimum pay raise. As veteran union leader C. Srikumar (AIDEF) noted:
“Government employees and pensioners deserve dignified and fair treatment from the 8th Central Pay Commission…”
Similarly, multiple central trade unions had earlier pressed the finance ministry to expedite the constitution of the Commission and address long-outstanding demands.
Road ahead
The last (7th) Pay Commission’s recommendations were implemented from January 1 2016. With the 8th Pay Commission now formally underway, all eyes will be on the fitment factor, minimum pay, merger of dearness allowance (DA) into pay, and pension revision. Analysts note that any delay in implementation could lead to rising arrears.)
As the government mobilises resources to cover the cost implications, central employees and pensioners await the Commission’s deliberations with hope and growing anticipation.