- A Pay Commission is a government-appointed body that reviews and recommends changes in the salary structure, allowances, and retirement benefits of Central government employees.
- It ensures fair compensation based on economic conditions, inflation, and fiscal capacity.
- Recommendations are usually implemented every 10 years.
About the 8th CPC
- Announced: January 2025
- Approved: October 2025 (Terms of Reference cleared by Union Cabinet)
- Chairperson: Justice Ranjana Prakash Desai (Retd.)
- Members:
- Prof. Pulak Ghosh (IIM Bangalore) – Part-time Member
- Pankaj Jain (Petroleum Secretary) – Member-Secretary
- Timeline: Report to be submitted within 18 months of constitution
Coverage & Scope
- Will impact ~50 lakh Central government employees and ~69 lakh pensioners
- Includes personnel from Defence, Railways, Home Ministry, and other departments
- Consultations held with State governments and Central PSUs
Key Considerations
- Economic conditions and fiscal discipline
- Resources for welfare and development
- Cost of non-contributory pension schemes
- Impact on State finances
- Comparison with private sector and PSU pay structures
Significance
- Aims to ensure equity, efficiency, and motivation in public service
- Plays a crucial role in social security, employee morale, and governance quality
Conclusion:
The 8th CPC marks a major step in updating India’s public sector compensation framework, balancing employee welfare with fiscal responsibility.
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