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Justice Ranjana Desai to Head 8th Central Pay Commission

In a major administrative move, the Union Cabinet chaired by Prime Minister Narendra Modi has appointed former Supreme Court judge Justice Ranjana Prakash Desai as the chairperson of the 8th Central Pay Commission (CPC), which will review pay structures, pensions, and service conditions for nearly 12 million central employees and pensioners.

The commission, which includes Pulak Ghosh, IIM Bangalore professor (part-time member), and Pankaj Jain, Petroleum and Natural Gas Secretary (member secretary), has been given 18 months to submit its report. Recommendations are expected to take effect retrospectively from January 1, 2026.

Unlike previous commissions, the 8th CPC’s terms of reference introduce a new clause—to assess the “unfunded cost of non-contributory pension schemes.” However, it omits the earlier mandate of studying “global best practices,” signaling a domestic, fiscally cautious approach.

The government emphasized that recommendations must balance fiscal prudence and economic realities, especially given the last pay commission (7th CPC) had increased expenditure by over ₹1 trillion in 2016-17.

While staff unions sought inclusion of issues like old pension scheme reinstatement, cashless medical benefits, and enhanced education allowances, these demands were not reflected in the final ToR.

The 8th CPC, a decadal exercise, is expected to significantly influence public sector pay structures, state finances, and broader economic consumption trends ahead of its 2026 implementation.