India, Oct. 28 -- The Union Cabinet on Wednesday approved the Terms of Reference (ToR) for the 8th Central Pay Commission, paving the way for a fresh revision of salaries, pensions, and allowances for central government employees. The pay panel's recommendations are expected to take effect from January 1, 2026, potentially bringing significant salary increases for lakhs of employees.

According to official estimates, the move will benefit approximately 50 lakh serving central government employees and 69 lakh pensioners nationwide.

The commission will be headed by former Supreme Court judge Ranjana Prakash Desai, with one part-time member and one member-secretary. It will have 18 months to submit its report from the date of constitution, ...