The Central Pay Commission will make its recommendations within 18 months of the date of its constitution
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The Government had announced the formation of the 8th CPC in January 2025 to examine and recommend changes in the salaries and other benefits of central government employees. Image for representation only.
The Union Cabinet has approved the Terms of Reference of the 8th Central Pay Commission (CPC), the body in charge of deciding the pay structure and retirement benefits of central government employees, the government announced on Tuesday (October 28, 2025).
The Union Cabinet Commission will comprise one chairperson, one part-time member and one member-secretary. It will make its recommendations within 18 months of the date of its constitution.
According to the government, the 8th CPC would have to keep several factors in mind while coming up with its recommendations.
Union Cabinet
These include 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, the impact of its recommendations on state finances, as well as the current emolument structure, benefits and working conditions of employees of central public sector undertakings and the private sector.
The 8th CPC can also, if it deems it necessary, send interim reports on any of the issues under its purview as and when the recommendations are finalised.
