The Union Cabinet has approved the Terms of Reference for the 8th Central Pay Commission (CPC). This body will decide the pay structure and retirement benefits for central government employees. The government announced this decision on Tuesday, October 28, 2025.
The formation of the 8th CPC was previously announced in January 2025 to review and suggest changes in salaries and other benefits for central government employees.
ToR Approved for 8th Central Pay Commission by Union Cabinet
The Commission will consist of one chairperson, one part-time member, and one member-secretary. It is expected to provide its recommendations within 18 months of its formation.
What does 8th CPC considers?
According to the government, the 8th CPC must consider several factors while formulating its recommendations. These factors include the country’s economic conditions, the importance of fiscal responsibility, the availability of resources for development and welfare programs, the costs associated with non-contributory pension schemes, the effect of its recommendations on state finances, and the existing pay structure, benefits, and working conditions for employees in central public sector undertakings and the private sector. If necessary, the 8th CPC can also submit interim reports on any issues within its scope as it finalises its recommendations.
Read also: Luv Films Announces Vadh 2 Sequel for February 6, 2026 Release