Context:
The Union Cabinet has formally approved the Terms of Reference (ToR) for the 8th Central Pay Commission (CPC), which will recommend revisions in salaries, allowances, and pension benefits for Central government employees. The announcement marks a crucial step in India’s periodic pay rationalisation framework, last implemented through the 7th CPC in 2016.
8th Central Pay Commission (CPC)
- The 8th Central Pay Commission is a temporary body constituted by the Union Government of India to review and recommend revisions to the salary structure, allowances, and pension benefits of Central Government employees and pensioners.
- Purpose:
- To ensure fair and updated compensation for government employees.
- To consider economic conditions, fiscal prudence, and employee welfare.
- To suggest improvements in service conditions and emoluments.
- Constitution and Leadership:
- The 8th CPC was announced in January 2025 and has now been officially constituted.
- Chairperson: Justice Ranjana Prakash Desai (Retd.)
- Part-time Member: Prof. Pulak Ghosh, Indian Institute of Management (IIM) Bangalore
- Member-Secretary: Pankaj Jain, Petroleum Secretary
Terms of Reference (ToR):
The 8th CPC will make recommendations keeping in view:
- The overall economic conditions and the need for fiscal prudence.
- Availability of resources for developmental and welfare expenditure.
- The unfunded liabilities arising from non-contributory pension schemes.
- The impact of recommendations on State finances.
- Comparison of emoluments and working conditions with employees in Central PSUs and the private sector.
