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Eighth Central Pay Commission
Context
The Union Government has initiated consultations with key ministries and state governments regarding the formation of the Eighth Central Pay Commission (CPC) to revise pay and pension structures for central government employees and pensioners.
Central Pay Commission (CPC):
- Definition: A Central Pay Commission is constituted periodically to review and recommend changes in the salary structure, allowances, and pension benefits for central government employees and pensioners.
- Constitutional Backing: Not mandated by the Constitution but derives authority from executive resolution under Article 73 (executive power of the Union).
- Frequency: Typically established every 10 years.
- Administrative Setup: Comes under the Department of Expenditure, Ministry of Finance.
- Composition: Usually chaired by a retired Supreme Court judge, supported by bureaucrats and financial experts.
Eighth Central Pay Commission
- Background: The Central Pay Commission is constituted every decade to review and recommend changes in the salary structure, allowances, and pension schemes for central government employees and pensioners. The Seventh CPC was implemented in 2016 with effect from 1st January 2016.
- Eighth CPC Formation: In January, the Union Cabinet approved the formation of the 8th CPC. As of July 2025, inputs are being sought from ministries such as Defence, Home Affairs, DoPT, and State Governments.
- Coverage: The 8th CPC will impact approximately 50 lakh serving employees and 65 lakh pensioners.
- Process: The commission’s recommendations are advisory in nature. Once submitted, they must be accepted by the Union Government before implementation. The time frame for submission and implementation has not yet been finalised.
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