Cabinet approves ToR of 8th pay panel, to benefit 50 lakh employees and 69 lakh pensioners
New Delhi, Oct 28 (PTI) The Cabinet on Tuesday approved the terms of reference of the 8th Pay Commission, which will benefit 50 lakh central government employees and 69 lakh pensioners and will have implications on the emoluments of the staff of state governments.
The recommendations of the Commission, to be headed by former Supreme Court judge Ranjana Prakash Desi, are likely to be effective from January 1, 2026.
The commission will submit its report in 18 months and interim reports as and when they are finalised.
The announcement comes ahead of Bihar state elections, which will be held between November 6 and 11.
According to an official statement, the commission will look into “the prevailing emolument structure, benefits and working conditions available to employees of Central Public Sector Undertakings and private sector” while finalising its recommendations.
While making its recommendations, the commission will also consider the economic conditions in the country and the need for fiscal prudence, and the need to ensure that adequate resources are available for developmental expenditure and welfare measures.
It would also take into account the unfunded cost of non-contributory pension schemes; and the likely impact of the recommendations on the finances of the state Governments which usually adopt the recommendations with some modifications, the statement said.
“The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, today approved the Terms of Reference of 8th Central Pay Commission,” Information & Broadcasting Minister Ashwini Vaishnaw told reporters.
