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Centre Notifies 8th Pay Commission With Expanded Mandate as Unions Seek Jan 2026 Start Date

The panel faces an 18-month deadline to propose revised compensation within strict fiscal guardrails.

Overview

  • The Finance Ministry’s November 3 notification constituted a three‑member 8th Central Pay Commission chaired by Justice Ranjana Prakash Desai, with Prof. Pulak Ghosh as part‑time member and Pankaj Jain as member‑secretary in New Delhi.
  • The Terms of Reference extend beyond pay and pensions to cover allowances, bonuses, gratuity and performance‑linked incentives, with benchmarking against PSU and private‑sector pay structures.
  • The commission has 18 months to submit recommendations, may issue interim reports, can set its own procedures and is empowered to appoint advisors and experts.
  • The All India Defence Employees’ Federation has asked the government to specify 01.01.2026 as the date of effect and to redraft parts of the ToR that it says create uncertainty.
  • Early research from private analysts sketches fitment‑factor scenarios of roughly 1.8–2.46, though any reset of Dearness Allowance and allowance restructuring will determine real take‑home gains.