The Cabinet on Tuesday approved the Terms of Reference (ToR) of the 8th Pay Commission, which is likely to be implemented from January 1, 2026.
The recommendations of the pay panel will benefit about 50 lakh central government employees and 69 lakh pensioners.
The commission will comprise one chairperson; one member (part time) and one member-secretary.
It will make its recommendations within 18 months of the date of its constitution.
The panel, to be chaired by former Supreme Court judge Ranjana Prakash Desai, will submit an interim report to the government.
Asked about the date of implementation of the pay panel award, I&B Minister Ashwini Vaishnaw said, "The specific date will be decided once the interim report comes in... But, mostly it should be January 1, 2026."
The Cabinet had in January 2025 accorded an in-principle approval for setting up of the 8th Pay Commission.
IIM (Bangalore) Professor Pulak Ghosh has been named as the part-time member, while Petroleum Secretary Pankaj Jain will be the Member Secretary.