What the 8th Pay Commission will examine: Terms of Reference (ToR) explained
The Gazette Resolution dated 03 November 2025 does not just constitute the 8th CPC, it also publishes the Terms of Reference (ToR). These ToR define what the Commission is allowed and expected to recommend.
1) Who is covered (categories listed in the ToR)
The ToR explicitly cover multiple categories, including:
– Central Government employees (industrial and non-industrial)
– All India Services personnel
– Defence Forces personnel
– Union Territories personnel
– Indian Audit and Accounts Department staff
– Members of regulatory bodies (excluding RBI)
– Supreme Court officers and employees
– High Court officers and employees whose expenditure is borne by Union Territories
– Subordinate judiciary in Union Territories (with a specific Supreme Court principle referenced for judicial independence)
2) What the Commission will recommend on
The ToR focus on:
– Pay and overall emoluments (cash and kind)
– Allowances and rationalisation of allowance structure
– Bonus and incentive-related frameworks linked to performance and productivity
– Retirement-related benefits, including Death-cum-Retirement Gratuity
– Pension-related recommendations, including for employees under and outside the National Pension System
3) Pension and gratuity review is explicitly in scope
The ToR contain specific clauses to review:
– Death-cum-Retirement Gratuity for employees under the National Pension System (including Unified Pension Scheme)
– Death-cum-Retirement Gratuity and pensions for employees not under NPS (including Unified Pension Scheme)
4) Key constraints the Commission must keep in view
The ToR list practical constraints and macro factors such as:
– Economic conditions and fiscal prudence
– Availability of resources for development and welfare
– Unfunded cost of non-contributory pension schemes
– Likely impact on State finances (since many States adopt pay commission outcomes with modifications)
– Prevailing emolument structures in CPSUs and private sector
Source (official)
1) Gazette of India (ToR published in the Resolution dated 03.11.2025):
https://egazette.gov.in/WriteReadData/2025/267353.pdf
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