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Cabinet Clears Terms for 8th Pay Commission, Sets 18-Month Timeline

The review spans roughly 1.2 crore employees plus pensioners, with recommendations intended to take effect from January 1, 2026.

Overview

  • Justice Ranjana Prakash Desai will chair the commission, with Pulak Ghosh as part-time member and Pankaj Jain as member‑secretary, following Terms of Reference finalised after Centre–state and staff consultations.
  • The panel has 18 months from its constitution to submit recommendations and may issue interim reports as specific items are finalised.
  • I&B Minister Ashwini Vaishnaw said the intended date of effect is January 1, 2026, so any eventual rollout would be applied retrospectively once the government accepts the recommendations.
  • The ToR require the commission to weigh economic conditions, fiscal prudence, unfunded pension liabilities, the impact on state finances, and compensation benchmarks in CPSUs and the private sector.
  • Based on past pay commission cycles, analysts say final approvals and payouts could stretch into 2027–28, with dearness allowance revisions continuing twice yearly in the meantime.