8th Central Pay Commission Notified: Chair, Members, Full Terms of Reference

Government publishes Resolution appointing 8th CPC; panel to submit report within 18 months

The Ministry of Finance (Department of Expenditure) has notified the Eighth Central Pay Commission (8th CPC) through a Resolution dated 3 November 2025. The notification sets out the Commission’s composition, mandate, and timeline, and has been ordered for publication in the Gazette of India.

Who’s on the 8th CPC

• Chairperson: Smt. Justice Ranjana Prakash Desai
• Member (Part-Time): Prof. Pulak Ghosh
• Member-Secretary: Shri Pankaj Jain

Headquarters: New Delhi
Timeline: The Commission will make its recommendations within 18 months from the date of its constitution. It may send interim reports on any matter as recommendations are finalized.

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What the Commission will examine

A. Pay, allowances and benefits (cash or kind)

The Commission will examine and recommend changes in emoluments—including pay, allowances and other facilities/benefits—with due regard to:

• Rationalisation of structures,
• Contemporary functional requirements, and
• Specialised needs across Departments, agencies and services.

Employee categories covered include:

1. Central Government employees — industrial and non-industrial
2. All India Services personnel
3. Defence Forces personnel
4. Union Territories personnel
5. Indian Audit and Accounts Department officers and staff
6. Members of regulatory bodies (excluding RBI) set up under Acts of Parliament
7. Supreme Court officers and employees
8. High Courts officers and employees whose expenditure is borne by Union Territories
9. Judicial officers of subordinate courts in Union Territories

Note on judicial officers: In line with the Supreme Court judgment dated 24 August 1993 (All India Judges’ Association & Others vs Union of India & Others), there shall be no link between the service conditions of judges and the administrative executive; service conditions of judges must address the specialized needs of the judiciary.

B. Emolument structure for talent and efficiency

• Recommend an emolument framework that attracts talent to Government service and promotes efficiency, accountability and responsibility in the work culture.

C. Performance-linked incentives

• Review existing bonus schemes and recommend principles, financial parameters and performance/productivity-linked parameters for an appropriate incentive scheme.

D. Allowances

• Review existing allowances, their admissibility and rationalisation, keeping in view the multiplicity of allowances.

E. Retirement benefits

• Death-cum-Retirement Gratuity (DCRG) and pensions:
  • For employees under the National Pension System (including Unified Pension Scheme) — review DCRG and make recommendations.
  • For employees not under NPS (including Unified Pension Scheme) — review DCRG and pensions and recommend changes, keeping in view factors listed under Para (f) below.

F. Factors to be kept in view

• Economic conditions and the need for fiscal prudence
• Ensuring adequate resources for developmental expenditure and welfare measures
• Unfunded cost of non-contributory pension schemes
• Likely impact on State finances, as States often adopt Central recommendations with modifications
• Prevailing emoluments, benefits and working conditions in CPSUs and the private sector

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Procedure and support

• The Commission may devise its own procedure and appoint Advisors, Institutional Consultants and Experts as needed, and call for information or evidence.
• All Ministries/Departments of the Government of India will furnish information and documents as required.
• The Government of India trusts that State Governments, Service Associations and others concerned will extend full cooperation and assistance.

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What this means for Central Government employees

• The notification formally starts the 8th CPC process, laying out who is covered, what will be reviewed, and the guiding constraints—notably fiscal prudence and state-level impact.
• Coverage explicitly spans Central Civil services (including AIS), Defence, UT administrations, IA&AD, regulatory bodies (excluding RBI), Supreme Court/UT High Courts staff, and UT subordinate judiciary.
• The scope includes: pay, allowances, bonus/performance-linked incentives, and retirement benefits (DCRG and pensions) across NPS/UPS and non-NPS cohorts.
• With an 18-month window, employees and associations can expect structured consultations before final recommendations are submitted.

View Notification: