8th Pay Commission Latest Update: Modi Cabinet has approved the Terms of Reference for the 8th Pay Commission. This commission will submit its report in 18 months and its recommendations can be implemented from January 2026, which will provide great relief to those doing government jobs.
8th CPC Approved: There is great news for lakhs of employees waiting for the 8th Pay Commission. A major decision was taken in the cabinet meeting chaired by Prime Minister Narendra Modi on Tuesday, October 28. Taking the next step towards the 8th Central Pay Commission, the Central Government has approved the ToR (Terms of Reference). This decision will have a direct impact on more than 47 lakh government employees and lakhs of pensioners.
Cabinet decision regarding 8th Pay Commission
The Cabinet on Tuesday approved the Terms of Reference (ToR) for the 8th Pay Commission. The commission will have a chairperson, a part-time member and a member-secretary. This commission will function as a temporary body and submit its final report to the government within 18 months from the date of its constitution. If needed, this commission can also give an interim report.
What will be the major challenges before the Commission?
The government has directed the Commission to make recommendations keeping in mind the economic situation, financial discipline and development expenditure needs. Apart from this, the Commission will also have to take into account the financial impact of pension schemes, the impact on the financial position of the states (since many states adopt the Centre’s recommendations) and the comparison of the position of employees of central undertakings and private sector.
What is 8th Pay Commission?
The Central Pay Commission is constituted from time to time to review the salary, allowances and retirement benefits of central government employees. Usually a new pay commission is implemented every 10 years. Now the 8th Pay Commission (8th CPC) is also a part of this series, whose recommendations are expected to be implemented from January 2026.
When will the benefits of 8th Pay Commission be applicable?
The recommendations of most pay commissions are implemented every decade. The 7th Pay Commission was implemented in 2016. Now the 8th Pay Commission can be effective from January 2026. Due to this, increase in salary, grade pay, pension and allowances of lakhs of employees is considered certain.
Why is this decision important?
This decision is not only a relief for government employees but is also a step that will impact the country’s economy. This will increase consumer spending, reduce the pressure of inflation and cost of living and it will be necessary for the government to maintain a balance between fiscal discipline and development spending. The government has made it clear that the 8th Pay Commission will run in a balanced manner. On one hand, employees should get better salary and pension, on the other hand, the economic responsibilities of the government should also be under control.
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