8th Central Pay Commission: Gazette Notification

Eighth Central Pay Commission: Complete Official Information for Government Employees

Published: November 4, 2025 | Category: Government Policies | Audience: Central Government Employees

Key Announcement

On November 3, 2025, the Government of India has officially constituted the Eighth Central Pay Commission. This will directly impact your salary, allowances, benefits, and retirement provisions over the coming years.

Timeline: Recommendations expected by May 3, 2027 (18 months from constitution)

Download Official Government Resolution

Read the complete, original resolution from the Ministry of Finance published in The Gazette of India

Download PDF from e-Gazette (Official)

Source: The Gazette of India, Extraordinary | Issue No. 322 | November 3, 2025 | Resolution No. 01-01/2025-E.III(A)

Who is Leading the Eighth Pay Commission?

Chairperson

Justice Ranjana Prakash Desai

Former Judge with expertise in judicial matters and policy formulation

Member (Part-Time)

Prof. Pulak Ghosh

Academic expert providing professional insights and analysis

Member-Secretary

Shri Pankaj Jain

Administrative head coordinating all commission activities and proceedings

Headquarters: New Delhi, India

Which Employees Will Be Affected?

The Eighth Central Pay Commission will review compensation and benefits for the following categories of employees:

1. Central Government Employees - Both industrial and non-industrial workers
2. All India Services (AIS) Personnel - IAS, IPS, IFS, and other AIS officers
3. Defence Forces Personnel - Army, Navy, Air Force, and other military personnel
4. Union Territories Employees - All UT administration staff
5. Audit and Accounts Department - Officers and staff of Indian Audit and Accounts Department
6. Regulatory Bodies Members - Members of Parliament-established regulatory bodies (excluding RBI)
7. Supreme Court Personnel - Officers and employees of the Supreme Court
8. High Court Personnel - Officers and employees of High Courts (where expenses are borne by Union Territories)
9. Judicial Officers - Judicial officers of subordinate courts in Union Territories

Note on Judicial Officers: The commission will follow Supreme Court guidelines (1993 judgment) ensuring independence of judicial officers from administrative executive decisions.

What Will the Commission Review and Recommend?

1. Pay, Allowances and Benefits Structure

The commission will comprehensively examine and recommend changes to:

• Basic Pay: Review and restructuring of salary scales
• Dearness Allowance (DA): Adjustment and revision mechanisms
• House Rent Allowance (HRA): Modification based on current requirements
• Other Allowances: Medical, special allowances, bonuses, and incentives
• In-Kind Benefits: Housing, transportation, education facilities, and healthcare

Recommendations will consider the contemporary functional needs and specialized requirements of different departments, agencies, and services.

2. Emolument Structure for Talent Attraction

The commission will design compensation structures to:

• Attract talented individuals to government service
• Promote efficiency and effectiveness in work
• Enhance accountability and responsibility
• Improve overall work culture and motivation

3. Bonus and Incentive Schemes

The commission will review existing bonus schemes with focus on:

• Performance metrics and achievement criteria
• Productivity parameters and efficiency measures
• Excellence recognition principles
• Financial parameters for incentive distribution
• Impact on overall compensation package

This could lead to changes in how bonuses are calculated and distributed to government employees.

4. Rationalization of Allowances

The government currently provides multiple allowances to employees. The commission will:

• Review all existing allowances and their conditions
• Assess the multiplicity and overlapping of allowances
• Recommend rationalization and simplification
• Suggest a more streamlined allowances structure
• Potentially consolidate some allowances

5. Gratuity and Pension Review

For Employees Under National Pension System (NPS including Unified Pension Scheme):

• Review of Death-cum-Retirement Gratuity
• Adequacy assessment for retirement security

For Employees NOT Under NPS:

• Review of Death-cum-Retirement Gratuity
• Comprehensive pension scheme review
• Recommendations for retirement benefits

Important Factors the Commission Will Consider

The commission's recommendations will be guided by these key considerations:

• Economic Conditions: Current fiscal health and need for fiscal prudence in government spending
• Development Spending: Ensuring adequate resources for welfare initiatives and development projects
• Pension Liabilities: Unfunded costs of non-contributory pension schemes and long-term obligations
• State Finances: Impact on state governments who typically adopt similar recommendations
• Private Sector Comparison: Comparing with Central PSUs and private sector compensation structures
• Fairness: Maintaining balance across different categories and departments

Important Timeline

November 3, 2025

Commission officially constituted by Ministry of Finance

November 2025 - May 2027

Commission reviewing policies, gathering information, and formulating recommendations

During Commission Period

Possible interim reports on specific matters as recommendations are finalized

May 3, 2027 (Expected)

Final recommendations to be submitted within 18 months

This will trigger a comprehensive review of all compensation structures

How Will the Commission Work?

The commission will operate under the following framework:

• Independent Procedure: The commission will develop its own working methodology and procedures
• Expert Team: Can appoint advisors, institutional consultants, and experts as needed for specific purposes
• Evidence Collection: Will call for information, evidence, and documentation from all relevant sources
• Government Support: All government ministries and departments must provide required information and assistance
• Stakeholder Cooperation: Will seek input from state governments, service associations, and other concerned parties
• Transparency: May issue interim reports on specific matters before final recommendations

What This Means for You as a Government Employee

The Eighth Central Pay Commission review could potentially affect the following aspects of your compensation and career:

Impact Area	What Could Change
Basic Salary	Pay scale structure, minimum and maximum limits, pay band revisions
Allowances	DA, HRA, special allowances, medical allowances, restructuring or consolidation
Bonus and Incentives	Performance bonuses, productivity rewards, festival advance, incentive criteria
Benefits and Facilities	Medical coverage, housing, transportation, leave policies, retirement benefits
Gratuity and Pension	Retirement benefits, pension calculations, gratuity
Overall Package	Total compensation structure, competitiveness with private sector, career progression

What Should You Do Now?

1. Stay Informed: Monitor official announcements from the Ministry of Finance regarding the commission's progress
2. Understand Current Benefits: Review your current salary structure, allowances, and benefits to understand potential changes
3. Track Interim Reports: Keep an eye out for any interim reports the commission may publish before final recommendations
4. Financial Planning: Consider the potential impacts on your retirement planning and financial goals
5. Review Final Report: When recommendations are published in 2027, carefully review how they affect your compensation

Official Sources and References

• Ministry of Finance: Government of India | Department of Expenditure
• Official Gazette: The Gazette of India, Extraordinary | Issue No. 322 | November 3, 2025
• Resolution Number: F. No. 01-01/2025-E.III(A)
• Published Date: Monday, November 3, 2025
• Document ID: CG-DL-E-03112025-267353

Important Disclaimer

This article is based on the official Government of India Ministry of Finance resolution dated November 3, 2025. The information provided is for educational purposes and to help government employees understand the pay commission process. For official details and clarifications: