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8th Central Pay Commission Approved, Potential Salary Overhaul Looms
28 Oct
Summary
- 8th Central Pay Commission established with 18-month deadline
- Commission to review salaries, allowances, and retirement benefits
- Aims to balance fairness for employees and India's economic needs
On October 28, 2025, the Indian government took a significant step forward in addressing the concerns of millions of central government employees. The Union Cabinet, led by Prime Minister Narendra Modi, approved the Terms of Reference (ToR) for the 8th Central Pay Commission, paving the way for a potential salary overhaul beginning January 1, 2026.
The newly established Commission is a lean and focused team tasked with spearheading this initiative. Justice Ranjana Prakash Desai, a respected former judge, has been appointed as the Chairperson, while Professor Pulak Ghosh and Pankaj Jain, the current secretary in the Ministry of Petroleum and Natural Gas, will serve as a part-time member and member-secretary, respectively.
The Commission has been given an 18-month deadline from its official constitution to deliver its recommendations, with the option to submit interim reports if urgent issues arise. This holistic approach aims to create a sustainable pay structure that rewards hard work without straining public finances.
