8th Pay Commission constituted: 18-month timeline set for recommendations, chairperson announced

The Government of India has formally constituted the 8th Central Pay Commission (8th CPC) to review and recommend revisions in the pay structure, allowances, and pension benefits of Central Government employees and pensioners.

The commission, officially notified by the Department of Expenditure, Ministry of Finance, marks the beginning of a comprehensive review process that will impact over 50 lakh employees and 70 lakh pensioners nationwide.

Composition Of The 8th Pay Commission

As per the notification issued in the Gazette of India, the three-member commission will be chaired by Justice (Retd.) Ranjana Prakash Desai, former Supreme Court judge. Prof. Pulak Ghosh, an academic and data scientist, has been appointed as Part-Time Member, while Shri Pankaj Jain, a senior IAS officer, will serve as Member-Secretary.

The 8th CPC will function from its headquarters in New Delhi, and has been tasked with presenting its final recommendations within 18 months from the date of constitution. If required, the panel may also submit interim reports on specific areas before completing its final report.

Terms Of Reference (TOR) Of 8th Pay Commission

The government has laid out an extensive Terms of Reference (ToR) defining the commission’s mandate. The commission will examine and recommend feasible changes to the emoluments, allowances, and other service benefits across various categories, including:

• Central Government employees (industrial and non-industrial)
• Members of the All India Services and Defence Forces
• Personnel of Union Territories
• Employees of the Indian Audit and Accounts Department
• Members of regulatory bodies set up under Acts of Parliament (excluding RBI)
• Officers and employees of the Supreme Court and High Courts (in Union Territories)
• Judicial officers in subordinate courts of Union Territories

In the case of judicial officers, the commission will adhere to principles set by the Supreme Court’s 1993 judgment in the All India Judges’ Association case, which mandates that judicial service conditions remain independent of the executive branch.

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Objectives And Policy Focus

The 8th Pay Commission panel will assess the current bonus and incentive structures, proposing reforms that encourage productivity, accountability, and efficiency. It will also review the multiplicity of existing allowances, recommending a streamlined and rationalised system. 

The commission is expected to pay particular attention to Death-cum-Retirement Gratuity (DCRG), pension structures, and benefits under both the National Pension System (NPS) and Unified Pension Scheme, aiming to balance employee welfare with fiscal sustainability.

It is worth noting that this will be the eighth such pay revision exercise since the First Pay Commission in 1947, with the 7th Pay Commission’s recommendations implemented in 2016. 

The 8th CPC’s report, expected by mid-2027, is likely to shape the financial landscape of government service for the next decade, covering salary rationalisation, pension reforms, and incentive-linked performance measures.