8th Pay Commission constituted. ToR Approved, Effectively Jan 2026

Great news for central government employees and pensioners! The Cabinet on Tuesday officially approved the Terms of Reference (ToR) for the 8th Pay Commission, a move that is expected to directly benefit around 50 lakh central government employees and 69 lakh pensioners.

While the commission will make its recommendations within 18 months of the date of its constitution, the pay hike is likely to be implemented from January 1, 2026. 

The commission, which will shape the new pay structure, has also been constituted. Leading the charge as Chairperson will be former Supreme Court judge Ranjana Prakash Desai. She will be joined by IIM (Bangalore) Professor Pulak Ghosh as the part-time member and Petroleum Secretary Pankaj Jain as the Member Secretary.

The Cabinet had given an in-principle approval for the commission earlier this year, in January 2025.

Information and Broadcasting Minister Ashwini Vaishnaw confirmed the likely timeframe, stating, "The specific date will be decided once the interim report comes in... But, mostly it should be January 1, 2026.”

The panel has a mandate to make its full recommendations within 18 months of its constitution and will submit an interim report to the government before that. This formal approval sets the wheels in motion for a significant salary revision that could boost the economic outlook for millions of families across the country.

Here are the key takeaways from the Cabinet's approval of the 8th Pay Commission's Terms of Reference (ToR):

• Approval and Implementation Date: The Cabinet has approved the ToR for the 8th Pay Commission. It is likely to be implemented from January 1, 2026.

• Beneficiaries: The recommendations will benefit approximately 50 lakh central government employees and 69 lakh pensioners.

• Commission Leadership:

  • Chairperson: Former Supreme Court judge Ranjana Prakash Desai.

  • Part-time Member: IIM (Bangalore) Professor Pulak Ghosh.

  • Member Secretary: Petroleum Secretary Pankaj Jain.

• Timeline: The commission will make its final recommendations within 18 months of its constitution and will also submit an interim report to the government.

• Official Confirmation: I&B Minister Ashwini Vaishnaw confirmed the likely implementation date, though the specific date awaits the interim report.