The Union Cabinet, chaired by Prime Minister Narendra Modi, has cleared the Terms of Reference (ToR) for the 8th Central Pay Commission, effectively kicking off the process for revising salaries, allowances and pensions of millions of central government employees and retirees.

Information and Broadcasting Minister Ashwini Vaishnaw confirmed that the government has finalised the commission’s composition, mandate and timelines.

The panel will submit its recommendations within 18 months, and the revised pay structure is expected to come into force from January 1, 2026.

The pay commission recommendations affect not just around 48 lakh central government employees and 67 lakh pensioners, but also influence compensation frameworks across state governments, public sector units, autonomous inst

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