New Delhi: The Indian government is set to form the 8th Central Pay Commission (CPC) as early as next week, aiming to revise the salary and pension structure for over 11.8 million central government employees and pensioners.
This move comes approximately ten months after the Cabinet’s approval and just ahead of the Bihar Assembly elections.
The Commission will recommend updated pay scales, allowances, and pension norms, with implementation expected to be retrospective from January 1, 2026. Sources indicate that the Terms of Reference (ToR), along with the appointments of the Commission’s Chairman and members, have been finalised. The Commission is anticipated to complete its report within 6 to 12 months.
This development follows Prime Minister Narendra Modi’s approval on January 16, 2025, and reflects the government’s commitment to addressing the financial needs of its workforce. Although the Pay Commission’s recommendations are advisory, they typically receive acceptance with minor modifications. implementation of the 8th CPC would significantly impact the financial planning of central government employees and pensioners.