8th Central Pay Commission: Modi Cabinet Approves Guidelines Set to Benefit 50 Lakh Employees and 69 Lakh Pensioners

The Union Cabinet, led by Prime Minister Narendra Modi, has given approval to the guidelines for the 8th Central Pay Commission, which will potentially benefit approximately 50 lakh central government employees and 69 lakh pensioners. This decision will also influence the salary structures of state government employees across India. According to the announcement, the Commission has been tasked with submitting its comprehensive final report within an 18-month timeframe.

During the official announcement, Information & Broadcasting Minister Ashwini Vaishnaw explained that the precise implementation date would be determined after receiving the interim report. However, he indicated that the most likely effective date would be January 1, 2026.

A government statement clarified that the Commission will formulate its recommendations while considering several critical factors: the current economic conditions in the country, the necessity for fiscal prudence, ensuring adequate resources remain available for developmental expenditures and welfare initiatives, the unfunded costs associated with non-contributory pension schemes, and the potential impact these recommendations might have on state government finances.

The Commission's deliberations will also take into account the existing salary structures, benefits packages, and working conditions of employees in Central Public Sector Undertakings as well as those in the private sector.

The government noted that these guidelines were finalized following extensive consultations with various ministries, state governments, and staff representatives from the joint consultative machinery.

Former Supreme Court judge Ranjana Prakash Desi has been appointed to chair the Commission. The panel will include IIM Bangalore Professor Pulak Ghosh as a part-time member, while Petroleum Secretary Pankaj Jain will serve as the Member Secretary.

Historically, recommendations from pay commissions are implemented on a ten-year cycle. The previous 7th Pay Commission was constituted in February 2014, with its recommendations taking effect from January 1, 2016.