Cabinet Approves Guidelines For 8th Pay Panel, Awaited by 50 Lakh Employees

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the guidelines for the 8th Central Pay Commission, which is expected to benefit 50 lakh central government employees and 69 lakh pensioners. It will also have an impact on the salaries of state government employees. The Commission will submit its final report within 18 months.

While making the announcement, Information & Broadcasting Minister Ashwini Vaishnaw said the specific date of implementation will be decided once the interim report comes in. "But mostly it should be January 1, 2026," he added.

A statement from the government said while making its recommendations, the Commission will keep in view the economic conditions in the country and the need for fiscal prudence; the need to ensure that adequate resources are available for developmental expenditure and welfare measures; the unfunded cost of non-contributory pension schemes and the likely impact of the recommendations on the finances of state governments.

The prevailing salary structure, benefits and working conditions of employees of Central Public Sector Undertakings and private sector will also be taken into account.

The guidelines were finalised after consultation with various ministries, state governments and the staff of joint consultative machinery, the government said.

The Commission will be headed by former Supreme Court judge Ranjana Prakash Desi, IIM (Bangalore) Professor Pulak Ghosh will be the part-time member while Petroleum Secretary Pankaj Jain will be the Member Secretary.

Usually, recommendations of pay commissions are implemented after a gap of every 10 years. The 7th Pay Commission was formed in February 2014. Its recommendations were implemented from January 1, 2016.