New Delhi:
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the guidelines for the 8th Central Pay Commission (CPC) — a major development that will impact around 50 lakh central government employees and 69 lakh pensioners across the country. The move is also expected to influence the salary structures of several state government employees.

Announcing the decision, Information and Broadcasting Minister Ashwini Vaishnaw said that while the exact implementation date will be confirmed after the interim report, it is “most likely to take effect from January 1, 2026.”

According to the government’s statement, the 8th Pay Commission will take into consideration the nation’s economic conditions, fiscal prudence, and the need to balance developmental and welfare expenditures. It will also assess the unfunded pension liabilities and the potential impact on state finances.

Additionally, the Commission will compare salary structures and benefits of employees working in Central Public Sector Undertakings (CPSUs) and the private sector to maintain fairness and competitiveness.

The guidelines were framed after consultations with multiple ministries, state governments, and representatives of the joint consultative machinery staff.

The Commission will be chaired by former Supreme Court judge Ranjana Prakash Desai, with IIM Bangalore Professor Pulak Ghosh serving as part-time member and Petroleum Secretary Pankaj Jain as the Member Secretary.

Pay commission recommendations are typically implemented every decade. The 7th Pay Commission, constituted in February 2014, came into effect from January 1, 2016.

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