Union Cabinet Approves Formation of 8th Central Pay Commission

In a move expected to bring significant changes to the compensation structure of central government employees, the Union Cabinet, chaired by Prime Minister Narendra Modi, has sanctioned the Terms of Reference for the 8th Central Pay Commission. This step marks the beginning of a comprehensive review aimed at revising pay structures and service conditions.

Comprising a Chairperson, a Part-Time Member, and a Member-Secretary, the newly formed temporary body is tasked with submitting its recommendations within 18 months. Union Minister Ashwini Vaishnaw emphasized the crucial nature of this decision, noting its swift execution just months after initial approval in January.

The Commission will assess various economic factors, fiscal responsibilities, and ensure resources for development and welfare. It will also evaluate existing pay conditions across sectors and suggest necessary adjustments, following the historical precedent set by previous commissions to implement changes roughly every ten years.