Eighth Pay Commission Updates: The Union Cabinet chaired by Prime Minister Narendra Modi has approved the Term of Reference (ToR) of the Eighth Pay Commission. This decision has brought great relief to more than 1 crore government employees and pensioners, who were waiting for this announcement for the last 10 months. The government officially approved it on 28 October (Tuesday).

What is Term of Reference (ToR)?

The term of reference is the framework on the basis of which the Pay Commission prepares its suggestions – that is, through this the Commission decides how much the basic pay, allowances and pension should be increased. The government has clarified that while preparing its recommendations, the Commission will keep in mind the country’s financial condition, fiscal management and the ability to spend on development and welfare schemes.

After the implementation of the recommendations of the 8th Pay Commission, the following employees will benefit from it – permanent and temporary employees of the Central Government, employees of the Ministry of Defense and Armed Forces, Railways, Postal Department, and Central Armed Police Forces (CAPF) employees and pensioners.

How much will the salary increase?

Fitment factor will be the basis for increase in salary of employees. In the Seventh Pay Commission, this factor was kept at 2.57x. For example, if the basic salary of an employee was Rs 20,000, then the new salary became: Rs 20,000 × 2.57 = Rs 51,400.

If this time the government increases the fitment factor further (say to 3.0x or 3.5x), then a bigger jump in salary is possible.

When will the 8th Pay Commission be implemented?

According to the government, the recommendations of the 8th Pay Commission will come into effect from January 2026. However, the commission has been given 18 months time to submit its report. Therefore, there is a possibility that this pay revision may be implemented by 2027 or 2028.

About 10 months ago, Union Minister Ashwini Vaishnav had informed about the formation of the 8th Pay Commission. He had said that the Commission will review the salaries, pensions and allowances of government employees so that the salaries can be revised to match the current economic scenario.

Also read: This share created a huge stir, made Rs 10 thousand from Rs 5 lakh in just 10 months, is still rising

Justice Ranjana Desai: There is big news for more than one crore central salaried employees and pensioners. The Central Government has given formal approval to the formation of the much awaited Eighth Pay Commission in the Union Cabinet meeting chaired by Prime Minister Narendra Modi on Tuesday. It has been approved about 10 months after the announcement of the Commission.

The government has given the commission 18 months time to submit its recommendations. On the basis of these recommendations, the increase in salary and pension of government employees can be implemented from the year 2027.

Who is Justice Ranjana Prakash Desai?

Former Supreme Court judge Justice Ranjana Prakash Desai has been appointed as the chairperson of the Eighth Pay Commission. At the same time, IIM Bangalore Professor Pulak Ghosh and Petroleum and Natural Gas Secretary Pankaj Jain have been included as member-secretaries.

Justice Ranjana Prakash Desai had earlier been the chairperson of the Delimitation Commission. Apart from this, she was also appointed as the head of the committee formed on the draft of Uniform Civil Code.

Since her retirement from the Supreme Court in 2014, she has served in various constitutional and administrative roles. Born on 30 October 1949, Ranjana Desai completed her graduation in Arts from Elphinstone College in 1970 and LLB degree from Government Law College, Mumbai in 1973.

When will the Eighth Pay Commission become effective?

Keeping in mind the rising inflation and cost of living in the country, a new pay commission is constituted every 10 years, under which the salaries, allowances and other facilities of the central employees are revised. According to this tradition, the Eighth Pay Commission will be considered effective from January 1, 2026. However, considering the time taken by the Commission to submit its recommendations, the actual pay and pension hike is likely to be implemented from the year 2027.

Read this also: Big news: Eighth Pay Commission gets Union Cabinet’s approval, 10 months wait is over