8th Pay Commission : The central government has completed the formal process of setting up the 8th Central Pay Commission on Monday, approving its Terms of Reference (ToR). Along with this, former Supreme Court Judge Justice Ranjan Prakash Desai has been appointed as the Chairman of the commission.
Union Information and Broadcasting Minister Ashwini Vaishnaw, while addressing the media after the cabinet meeting, said that the commission will have to submit its recommendations within 18 months. The government intends to implement the recommendations of the 8th Pay Commission from January 1, 2026.
What is the “Terms of Reference” (ToR)?
The Terms of Reference (ToR) are the official guidelines and scope of work provided by the government to a commission, committee, or organization. In simple terms, the ToR defines what subjects the commission will work on, the time frame for submitting its report, and the key factors it must consider during its review.
Key Focus Areas of the 8th Pay Commission
While preparing its recommendations, the Pay Commission will give special attention to the following five aspects:
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The economic condition of the country and the need for fiscal discipline.
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Ensuring that adequate resources remain available for development projects and welfare schemes.
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Considering the cost of non-contributory pension schemes.
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Evaluating the financial impact on state governments, since most states usually adopt the central recommendations.
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Comparing the pay, allowances, and working conditions of employees in central public sector undertakings (PSUs) and the private sector.
When Was the 8th Pay Commission Announced?
The formation of Central Pay Commissions takes place periodically to review and recommend changes to the salaries, pensions, and service conditions of central government employees. Generally, a new pay commission is set up every 10 years.
In line with this tradition, the 8th Central Pay Commission is expected to implement its recommendations starting from January 1, 2026. The government had announced the formation of the 8th Pay Commission in January 2025, aiming to review and enhance the pay structure, allowances, and benefits of central government employees.
