New Delhi: The Union Cabinet, chaired by prime minister Narendra Modi, today (October 28) approved the Terms of Reference of 8th Central Pay Commission – 10 months after the commission was approved to be formed.

The Modi government has named former Supreme Court judge Justice Ranjana Prakash Desai as the chairperson of the Commission. It's part-time member is IIM Bangalore professor Pulak Ghosh and its member-secretary is petroleum ministry secretary Pankaj Jain.

The government had announced the 8th pay commission in January this year. Workers' unions had been increasingly concerned at the delay in formal notifications and appointments to the pay commission, which are constituted to go into various issues of the emoluments structure, retirement benefits and other service conditions of Central government employees and to make recommendations on changes.

In September, the All India Railwaymen’s Federation (AIRF) had held a demonstration against the delay. The Central Secretariat Service Forum (CSSF) also recently wrote to PM Modi, highlighting that the 7th Pay Commission had been constituted almost two years before its implementation date which gave it sufficient time for research and consultation. Indeed the 7th commission was approved on September 25, 2013, constituted in February 2014, and its recommendations implemented from January 1, 2016.

In contrast, the Press Information Bureau's update states that the 8th Pay Commission will make its recommendations within 18 months of the date of its constitution. It says, "...the effect of the 8th Central Pay Commission recommendations would normally be expected from 01.01.2026". Thus, it would appear that the 8th commission's recommendations will be implemented retrospectively.

The PIB note says that while making the recommendations the Commission will keep in view the following (quoted directly from the note):

i. The economic conditions in the country and the need for fiscal prudence;

ii. The need to ensure that adequate resources are available for developmental expenditure and welfare measures;

iii. The unfunded cost of non-contributory pension schemes;

iv. The likely impact of the recommendations on the finances of the State Governments which usually adopt the recommendations with some modifications; and

v. The prevailing emolument structure, benefits and working conditions available to employees of Central Public Sector Undertakings and private sector.

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