Ahead of the Bihar Assembly elections, the Government on Tuesday approved the terms of reference of the 8th Pay Commission, which will benefit 50 lakh Union Government employees, 69 lakh pensioners and will have implications on the emoluments of State Government staff.
Ranjana Prakash Desi, former Supreme Court judge, will head the. The commission will submit its report in 18 months, and interim reports as and when they are finalised, while its recommendations will likely be effective from January 1, 2026. According to an official statement, the commission will look into “the prevailing emolument structure, benefits and working conditions available to employees of Central Public Sector Undertakings and private sector” while finalising its recommendations.
While making its recommendations, the commission will also consider the economic conditions in the country, the need for fiscal prudence and the need to ensure that adequate resources are available for developmental expenditure and welfare measures.
It would also take into account the unfunded cost of non-contributory pension schemes and the likely impact of the recommendations on the finances of the State Governments, which usually adopt the recommendations with some modifications, the statement said.
“The Union Cabinet, chaired by the Prime Minister Narendra Modi, approved the Terms of Reference of 8th Central Pay Commission,” Information & Broadcasting Minister Ashwini Vaishnaw briefed the media after the Cabinet meeting. On the date of implementation of the pay panel award, Vaishnaw said, “The specific date will be decided once the interim report comes in... But mostly it should be January 1, 2026.” The ToR has been finalised after consultation with various ministries, State Governments and staff side of joint consultative machinery. The Pay Commission, under Desai, will have one part-time member — IIM (Bangalore) Professor Pulak Ghosh, while Petroleum Secretary Pankaj Jain will be the Member Secretary.
Desai is the chairman of the Press Council of India. She has headed major Government panels in the past, including the Delimitation Commission for the Union Territory of Jammu and Kashmir, and the expert committee on drafting of Uttarakhand’s Uniform Civil Code (UCC). This will be her fourth major assignment after retiring as a Supreme Court judge.
