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8th Pay Commission: Biggest update on salary-pension! Will the formula of ‘like the work, like the price’ be implemented?
Sanjeev Kumar | November 5, 2025 3:23 AM CST

Big update on 8th Pay Commission

8th Pay Commission: This is the most important news of this time for lakhs of central government employees and pensioners. The government has completed the process of constituting the 8th Pay Commission and an official notification has also been issued in this regard. This commission has been constituted for a comprehensive review of the existing salaries, allowances and other facilities of central employees. Within the next 18 months, this commission will submit its recommendations to the government, which will directly affect the economic condition of millions of families.

The government has decided everything from the names of the chairperson of the commission to the members, the manner of their working (Terms of Reference) and the headquarters (New Delhi). this time commission The main focus will be on creating a pay structure that is not only logical but also linked to the performance of the employees.

command in their hands

The reins of this important commission have been handed over to former Supreme Court judge, Justice Ranjana Prakash Desai. He has been made the chairperson of the commission. Under his chairmanship, this commission will prepare recommendations keeping in mind the current economic situation of the country.

Apart from Justice Desai, two other members are also included in the commission. Professor Pulak Ghosh has been appointed as a part-time member of the Commission, while Pankaj Jain will play the role of Member Secretary in the Commission. This three-member team will work to decide the future of salaries and allowances of lakhs of employees for the next one and a half years. The headquarters of the Commission will be in New Delhi and all its proceedings will be conducted from here.

The real emphasis will be on performance

The work of the 8th Pay Commission is not just to increase the existing salary. It is clear from the notification (TOR) issued by the government that this time the focus is on 'performance based' salary structure. The Commission has been asked to prepare a framework that encourages employees to do better work. This could simply mean that in the future, employees who perform well may get more financial benefits than others.

Apart from this, a major goal of the Commission is to make government jobs more attractive, so that the most talented and capable people of the country are attracted towards government service. The Commission will also give its recommendations on measures to strengthen the sense of responsibility and accountability among the employees.

Who will come under the scope?

This pay commission is not limited to only general central employees. Its scope is very broad and will include employees from many different services. The employees whose salaries, allowances and benefits will be reviewed by the Commission include.

  • Industrial and non-industrial employees of the Central Government.
  • Members of Defense Forces.
  • Officers of All India Services.
  • Employees of Union Territories.
  • Employees of audit department.
  • Employees and judicial officers of the Supreme Court and High Court (which fall under the Union Territory).

The Commission will also review the existing bonus scheme and see how effective it is. Besides, the usefulness of all types of allowances will also be evaluated. It is also possible that it may be recommended to abolish those allowances which have become unnecessary in today's time.

From NPS to old pension, every aspect will be monitored

The issue of pension and gratuity is also prominently included in the agenda of the 8th Pay Commission. The Commission will specifically review the Death-cum-Retirement Gratuity (DCRG) for employees covered under the National Pension System (NPS). It will be seen how appropriate the existing provisions are.

Along with this, the Commission will also give its recommendations on the pension and gratuity rules of those employees who are outside the NPS (i.e. within the scope of the old pension system). Its objective is to ensure that retired employees continue to get fair and respectable financial security in return for their service.

The Commission will have to keep many things in mind while giving its recommendations. In this, the current economic condition of the country, financial discipline of the government and availability of resources for development works are most important. The Commission will also have to consider the financial position of the states, because often the states also implement the recommendations of the Centre. Apart from this, a balanced report will be prepared by comparing the salaries received in Government Undertakings (PSUs) and private sector.

The Commission will be able to take the help of external experts as per its need. All ministries have been instructed to provide timely information to the Commission. The Commission has to submit its final report within 18 months, but if needed, it can also submit an interim report on a specific issue. Employees are hopeful that if a positive decision is taken on issues like fitment factor, then they may see a big increase in their salary and pension.


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