8Th CPC ToR (Term of Reference)

Cabinet Approves Terms of Reference for 8th Central Pay Commission

Date of Release: October 28, 2025, 3:03 PM

Source: PIB Delhi

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

Overview

The 8th Central Pay Commission will be constituted as a temporary body comprising:

• A Chairperson

• One Part-Time Member, and

• One Member-Secretary

The Commission will submit its recommendations within 18 months from the date of its constitution. If required, it may also submit an interim report on any matter before finalizing its recommendations.

Key Considerations

While making its recommendations, the Commission will take into account the following factors:

1. The state of the economy and the need for fiscal prudence.

2. The necessity to ensure adequate resources for developmental and welfare activities.

3. The unfunded liability of non-contributory pension schemes.

4. The likely impact on the finances of State Governments, which generally adopt the Commission’s recommendations with suitable modifications.

5. The prevailing pay structures, benefits, and service conditions of employees in Central Public Sector Undertakings (CPSUs) and the private sector.

Background

Central Pay Commissions are periodically constituted by the Government of India to review and recommend changes in the pay structure, retirement benefits, and other service conditions of Central Government employees.

Traditionally, the recommendations of each Pay Commission are implemented once every ten years. In line with this pattern, the 8th Central Pay Commission’s recommendations are expected to take effect from January 1, 2026.

The Government had announced the constitution of the 8th Central Pay Commission in January 2025 to review the existing pay and service conditions of Central Government employees and suggest suitable revisions.

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