Cabinet Approves Terms of Reference for 8th Central Pay Commission

Date: 28 October 2025 | Source: PIB Delhi

Over view – Terms of Reference (ToR) for the 8th Central Pay Commission (CPC).

The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the Terms of Reference for the 8th Central Pay Commission (CPC).

The 8th CPC will be a temporary body with:

• One Chairperson
• One Part-time Member
• One Member-Secretary

The Commission will submit its recommendations within 18 months from the date of its formation. It may also issue interim reports on specific matters if required.

Also read: 8th CPC Minimum Pay, Fitment factor and Allowance

Key Points to be Considered

While making its recommendations, the Commission will focus on:

1. The country’s economic conditions and need for fiscal prudence.
2. Ensuring resources for development and welfare programs.
3. Addressing the cost of pension schemes.
4. Assessing the impact on State Government finances.
5. Comparing pay and benefits with the public and private sectors.

Background

Central Pay Commissions are set up roughly every 10 years to review the salary structure, retirement benefits, and service conditions of Central Government employees.

Following this cycle, the 8th CPC recommendations are expected to take effect from 1st January 2026.

The Government had earlier announced the formation of the 8th CPC in January 2025 to review and suggest necessary updates to pay and benefits for Central Government employees.

Source: Pdf