Union Cabinet approves the phrases of reference for the eighth Pay Commission

The Union Cabinet has authorized the Terms of Reference of the eighth Central Pay Commission (CPC), the physique answerable for deciding the pay construction and retirement advantages of central authorities workers, the federal government introduced on Tuesday (October 28, 2025).

The Government had introduced the formation of the eighth CPC in January 2025 to look at and suggest adjustments within the salaries and different advantages of central authorities workers.

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The Commission will comprise one chairperson, one part-time member and one member-secretary. It will make its suggestions inside 18 months of the date of its structure. 

According to the federal government, the eighth CPC must preserve a number of elements in thoughts whereas developing with its suggestions.

These embody the financial circumstances within the nation and the necessity for fiscal prudence, the necessity to make sure that ample assets can be found for developmental expenditure and welfare measures, the unfunded price of non-contributory pension schemes, the impression of its suggestions on state funds, in addition to the present emolument construction, advantages and dealing circumstances of workers of central public sector undertakings and the non-public sector.

The eighth CPC may, if it deems it obligatory, ship interim studies on any of the problems underneath its purview as and when the suggestions are finalised.