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Cabinet Clears Terms for 8th Pay Commission, Report Due in 18 Months

The panel has 18 months to deliver recommendations within a remit that stresses fiscal prudence.

Overview

  • The Union Cabinet approved the Terms of Reference on October 28, setting a target for the commission to submit its report around April 2027.
  • Past practice suggests implementation could follow months later, with several reports pointing to late 2027 or 2028 for pay and pension changes, with retrospective effect from January 1, 2026.
  • The commission is reported to be led by Justice Ranjan Prakash Desai and will include a chairperson, a part-time member, and a member secretary.
  • The ToR tasks the panel with reviewing pay structures, allowances, pensions, retirement benefits, and service conditions, with attention to fiscal capacity, state finances, unfunded pension burdens, and CPSU–private sector pay comparisons.
  • The fitment factor will determine the size of revisions, with media estimates currently ranging from 1.86 to 2.57, and 68.72 lakh pensioners are among those affected.