Justice Ranjana Prakash Desai will chair the Commission, with recommendations expected within 18 months.
Revised pay scales are likely to take effect from 1 January 2026, following government approval.
Dearness Allowance (DA) will continue to be revised periodically to offset inflation and maintain employees’ real income.
The Union Cabinet on Tuesday approved the Terms of Reference (ToR) for the 8th Pay Commission, which will revise the salaries of nearly 50 lakh central government employees. Former Supreme Court judge Ranjana Prakash Desai will chair the Commission.
The panel is expected to submit its recommendations within 18 months, and the revised pay is likely to take effect from 1 January 2026, Information and Broadcasting Minister Ashwini Vaishnaw said at a Cabinet briefing.
In January, the Cabinet approved the formation of the 8th Pay Commission to revise salaries for central government employees and allowances for around 69 lakh pensioners. Justice Desai will lead the Commission, with Professor Pulak Ghosh as a member and Pankaj Jain as member-secretary.
Cabinet announcements on the 8th Pay Commission
At the briefing, Vaishnaw said the ToR had been finalised after consultations with various ministries, state governments, and the staff side of the Joint Consultative Machinery.
In July, the government informed Parliament that it had sought input from major stakeholders, including the Defence and Home Ministries, the Department of Personnel and Training, and state governments, on establishing the 8th Central Pay Commission.
When asked about the implementation of revised pay scales, Union Minister of State for Finance Pankaj Chaudhary said it would follow "once the recommendations are made by the 8th CPC and accepted by the government."
The Pay Commission is usually set up by the Centre every 10 years to revise government employee remuneration. The 7th Pay Commission was formed in February 2014, with its recommendations implemented from 1 January 2016. The 8th Pay Commission is scheduled to take effect from 1 January 2026.
To offset the impact of inflation on real salaries, central government employees receive a dearness allowance (DA), which is revised every six months based on inflation rates.
