Centre Approves Terms of Reference for 8th Central Pay Commission Headed by Justice Ranjana Desai

The Union Cabinet has formally approved the Terms of Reference for the 8th Central Pay Commission (CPC), which will recommend changes to the salary and pension structures for approximately 50 lakh Central government employees and pensioners. The commission, headed by retired Justice Ranjana Prakash Desai, is expected to submit its report within 18 months. The panel will consider various factors, including the country's economic conditions, fiscal prudence, and the need for developmental expenditure. This move follows the usual ten-year cycle for revising government pay scales, with the previous commission's recommendations implemented in 2016.

Key Points

  • The commission includes Chairperson Justice Ranjana Desai, one part-time member, and one member-secretary.
  • It will evaluate the impact of its recommendations on State finances and the unfunded cost of non-contributory pension schemes.
  • Consultations will be held with various Ministries, including Defence, Home, and Railways, which employ the largest number of personnel.
  • The commission must balance employee benefits with the need for fiscal prudence and welfare measures.

Exam Facts

  • 8th CPC is headed by Justice Ranjana Prakash Desai (retd.).
  • The commission has an 18-month deadline from its date of constitution to submit recommendations.
  • The commission affects approximately 50 lakh Central government employees.

Read it. Retain it. Recall it.

Get spaced-repetition flashcards, daily quizzes and offline access — free on Android.

Get it on Google Play

All current affairs of 29 October 2025