### Major Development: 8th Pay Commission Approved by Union Cabinet The Union Cabinet of India has officially approved the Terms of Reference (ToR) for the 8th Central Pay Commission, which is set to revise the salaries and pensions of central government employees and pensioners. This significant decision, announced on October 28, 2025, is expected to benefit approximately 1.2 crore individuals, including 50 lakh employees and 69 lakh pensioners. The implementation of the new pay structure is anticipated to take effect from January 1, 2026, with a proposed salary hike ranging from 30% to 35% [https://www.firstpost.com/india/8th-central-pay-commission-cpc-government-cabinet-approval-salary-hike-implementation-timeline-ws-e-13945858.html, https://www.financialexpress.com/money/8th-pay-commission-union-cabinet-approves-terms-of-reference-what-it-means-for-central-govt-employees-4023999.html]. ### Structure of the 8th Pay Commission Overview 1. **Approval and Leadership**: - The Union Cabinet, led by Prime Minister Narendra Modi, approved the ToR for the 8th Pay Commission. - Justice Ranjana Prakash Desai has been appointed as the chairperson of the commission [https://www.hindustantimes.com/india-news/cabinet-approves-terms-of-reference-of-8th-pay-commission-101761643940527.html]. 2. **Implementation Timeline**: - The new pay structure is expected to be implemented from January 1, 2026. - The commission is tasked with submitting its report within 18 months [https://www.financialexpress.com/money/8th-pay-commission-union-cabinet-approves-terms-of-reference-what-it-means-for-central-govt-employees-4023999.html, https://www.takeonedigitalnetwork.com/cabinet-gives-nod-to-8th-central-pay-commission-panel-to-submit-report-in-18-months]. 3. **Expected Salary and Pension Increases**: - A salary hike of 30-35% is anticipated, with the minimum basic pay potentially rising from INR 18,000 to around INR 46,000 per month. - The proposed fitment factor is expected to range between 1.83 and 2.46 [https://www.latestly.com/india/information/8th-pay-commission-know-how-much-salary-and-pension-are-likely-to-increase-for-central-government-employees-and-pensioners-from-january-1-2026-7182203.html]. 4. **Scope of Review**: - The commission will review the existing pay structure, allowances, and working conditions for central government employees and pensioners, as well as those in Central Public Sector Undertakings [https://www.thehindubusinessline.com/news/cabinet-approves-terms-of-reference-for-8th-central-pay-commission/article70212001.ece]. ### Supporting Evidence and Data - **Salary Increase Projections**: - **Current Minimum Basic Pay**: INR 18,000 - **Projected Minimum Basic Pay**: INR 46,000 - **Expected Salary Hike**: 30-35% for over 1 crore employees and pensioners [https://www.latestly.com/india/information/8th-pay-commission-know-how-much-salary-and-pension-are-likely-to-increase-for-central-government-employees-and-pensioners-from-january-1-2026-7182203.html]. - **Commission Composition**: - The commission will consist of a chairperson, a part-time member, and a member-secretary, ensuring a focused approach to the review process [https://www.india.com/business/modi-government-8th-pay-commission-da-epfo-finance-ministry-tor-salaries-hike-expected-central-govt-employees-fitment-factor-minimum-basic-pay-8154537.html]. ### Conclusion: Implications of the 8th Pay Commission The approval of the 8th Pay Commission marks a pivotal moment for central government employees and pensioners in India. 1. **Significant Salary and Pension Revisions**: The anticipated salary hikes and pension revisions are expected to provide substantial financial relief to millions of government employees and retirees. 2. **Implementation Timeline**: With the new pay structure set to be effective from January 1, 2026, employees can look forward to improved financial conditions in the near future. 3. **Comprehensive Review**: The commission's mandate to review existing pay structures and working conditions indicates a commitment to enhancing employee welfare and addressing long-standing concerns within the public sector. In summary, the 8th Pay Commission is poised to bring about transformative changes in the compensation landscape for central government employees, reflecting the government's ongoing efforts to support its workforce [https://www.firstpost.com/india/8th-central-pay-commission-cpc-government-cabinet-approval-salary-hike-implementation-timeline-ws-e-13945858.html, https://www.financialexpress.com/money/8th-pay-commission-union-cabinet-approves-terms-of-reference-what-it-means-for-central-govt-employees-4023999.html].