The Union Cabinet on Wednesday approved the Terms of Reference (ToR) for the 8th Central Pay Commission, paving the way for a comprehensive review of pay and pension structures for central government employees and retirees. The recommendations of the panel are expected to benefit nearly 50 lakh employees and 69 lakh pensioners across the country.

According to the government, the new pay commission will submit its recommendations within 18 months of being constituted. The commission will have a chairperson, one part-time member, and a member-secretary.

The panel will be chaired by former Supreme Court judge Ranjana Prakash Desai, and it will also submit an interim report to the government during the course of its work.

When asked about the implementation timeline, Information and Broadcasting Minister Ashwini Vaishnaw said, “The specific date will be decided once the interim report comes in... but mostly it should be January 1, 2026.”

The Cabinet had earlier, in January 2025, granted in-principle approval for the formation of the 8th Pay Commission, which will succeed the 7th Pay Commission that came into effect in January 2016.