New Delhi, Nov 4: The Government of India has officially constituted the Eighth Central Pay Commission (8th CPC) to examine and recommend revisions in the pay structure, allowances, pensions, and other service-related benefits for Central Government employees, defence personnel, and allied categories of staff. The announcement marks a crucial step toward reviewing the financial framework governing India’s vast public service sector, which directly impacts millions of serving and retired government employees.
The Commission will be chaired by Justice (Retd.) Ranjana Prakash Desai, an eminent jurist and former Supreme Court judge. Prof. Pulak Ghosh, a noted economist and data scientist, has been appointed as the Part-Time Member, while Shri Pankaj Jain, a senior bureaucrat, will serve as the Member-Secretary. This diverse composition is designed to bring together expertise in law, economics, and public administration to ensure a comprehensive review of pay and benefit structures.
According to the official notification, the 8th CPC’s primary mandate is to evaluate the existing compensation system for Central Government employees, assessing whether the current pay and allowances reflect the demands of modern governance, fiscal realities, and workforce efficiency. The Commission will focus on achieving a balance between rewarding performance and maintaining fiscal prudence, ensuring that public resources are used responsibly while keeping employee morale high.
The Commission’s terms of reference include a thorough review of basic pay, dearness allowance, house rent allowance, transport allowance, and special incentives, along with pension schemes, gratuity, and post-retirement benefits. It will also study the functioning of performance-linked incentive structures to promote meritocracy and accountability within the government workforce. Additionally, it will assess disparities between employees covered under the National Pension System (NPS) and those under the old pension scheme (OPS), and may recommend harmonised or modified frameworks to ensure fairness and sustainability.
Headquartered in New Delhi, the 8th CPC has been given 18 months to complete its work and submit its recommendations to the Government of India. However, the Commission may also submit interim reports during its tenure, especially if specific recommendations require early implementation. Once the recommendations are finalised, they will undergo Cabinet review before being notified and implemented, potentially influencing salary structures across both central and state government institutions.
The formation of the 8th CPC follows the implementation of the Seventh Pay Commission (7th CPC) in 2016, which had introduced a new pay matrix and rationalised allowances across departments. The latest Commission is expected to not only revisit pay levels in the context of inflation and cost of living but also integrate digital governance efficiencies and modern performance metrics into compensation design.
Experts believe that the recommendations of the 8th CPC will play a significant role in shaping the economic and social security landscape of India’s public workforce. The review assumes additional importance as it coincides with ongoing discussions on pension reforms, pay parity, and the future of performance-based incentives in government employment.