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  1. 8th Pay Commission: Next steps, effective date and FAQs you should know now

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8th Pay Commission: Next steps, effective date and FAQs you should know now

Upstox

4 min read | Updated on October 28, 2025, 18:20 IST

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SUMMARY

8th Pay Commission FAQs after Union Cabinet approval on October 28, 2025: The 8th Pay Commission is expected to revise the salaries, pensions and various allowances offered to central government employees and pensioners.

8th pay commission news

The 8th CPC will be a temporary body, comprising of a Chairperson, a part-time member and a member-secretary. | Image source: Shutterstock

The much-awaited Terms of Reference of the 8th Central Pay Commission (CPC) has finally received the approval of the Union Cabinet. Central government employees and pensioners had been waiting for this development since January 2025, when the Union Cabinet had announced its decision to set up the new pay panel.
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The 8th CPC is expected to revise salaries, pensions and various allowances offered to central government employees and pensioners to reflect the rising cost of living.

While the Terms of Reference will provide a broad framework for the 8th CPC to formulate its recommendations on pay and pension revisions, there is a lot of anticipation among employees regarding the next steps in commission's journey, including its implementation timeline, the effective date, the expected date from which employees and pensioners may begin receiving higher monthly payments. This article answers some of the most frequently asked questions (FAQs):

What was approved by the Union Cabinet today?
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Terms of Reference of the 8th CPC today (Tuesday, October 28, 2025). It has also announced the number of members in the 8th CPC and the broad areas that the upcoming pay panel will keep in view while submitting its recommendations.
Who is the chairperson of the 8th Pay Commission?

Justice Ranjana Prakash Desai is the chairperson of the 8th Pay Commission.

What are the next steps for the 8th Pay Commission?

The next steps for the 8th CPC will include the following:

Step 1: Gazette notification of the Terms of Reference of the 8th CPC
Step 2: Constitution of the 8th CPC, appointment of its chairperson, members, and staff
Step 3: The commission will begin its work, which will include several activities over the next 12-18 months, including the complete review of the current pay and pension structures, stakeholder meetings, consultation with various bodies and much more.
Step 4: The commission will submit its report to the Government
Step 5: The Government will review the report, make changes or announce the implementation as it is with effect from January 1, 2026.
What will be the effective date of the 8th Pay Commission implementation?

The 8th CPC will be implemented with effect from January 1, 2026.

"Usually, the recommendations of the pay commissions are implemented after a gap of every ten years. Going by this trend, the effect of the 8th Central Pay Commission recommendations would normally be expected from 01.01.2026," the Union Cabinet said in a release.

When will the 8th Pay Commission be constituted?

The 8th Pay Commission has been constituted. Justice Ranjana Prakash Desai, former Supreme Court Judge, has been appointed as Chairperson of the 8th Central Pay Commission. She is also the first woman ever to head a Central Pay Commission.

What is the tentative timeline for the implementation of 8th Pay Commission?

The 8th CPC will submit its report within 18 months. After that the Government may take another 5-6 months to implement the 8th CPC's recommendations. Therefore, the final implementation of the 8th CPC may happen within two years from now.

*How much time will the 8th Pay Commission take to submit its report and recommendations?

According to the Union Cabinet, the 8th CPC will make its recommendations within 18 months of the date of its constitution. It may consider, if necessary, sending interim reports on any of the matters as and when the recommendations are finalised.

*What are the Terms of Reference of the 8th Pay Commission?

The Government has not yet notified the Terms of Reference. However, it has announced the following broad points that the 8th CPC will keep in its view:

  • The economic conditions in the country and the need for fiscal prudence;

  • The need to ensure that adequate resources are available for developmental expenditure and welfare measures;

  • The unfunded cost of non-contributory pension schemes;

  • The likely impact of the recommendations on the finances of the State Governments which usually adopt the recommendations with some modifications; and

  • The prevailing emolument structure, benefits and working conditions available to employees of Central Public Sector Undertakings and private sector.

How many members will there be in the 8th Pay Commission?

The 8th CPC will be a temporary body, comprising of a Chairperson, a part-time member and a member-secretary.

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Upstox
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