8th Pay Commission: Great news for central government employees! The Modi government has officially announced the 8th Pay Commission. On November 3, 2025, the Finance Ministry released a notification allowing the commission to kick off its work. Justice Ranjana Desai will lead the commission, with Professor Pulak Ghosh as a part-time member and Pankaj Jain serving as the member secretary. The commission will be based in New Delhi and is expected to deliver its report to the government within 18 months. If needed, they will also provide an interim report. Besides salaries, the commission will look into allowances, bonuses, and gratuity.

Who will benefit?

This Commission will assess the salaries and benefits for both industrial and non-industrial employees of the Central Government, including officers from All India Services (IAS, IPS, IFS), Armed Forces, Union Territories, the Audit and Accounts Department of India, regulatory bodies set up by Parliament (excluding RBI), and employees of the Supreme Court and High Courts (under UTs).

This time around, the Commission’s focus has expanded significantly. It won’t just be about salaries and pensions; it will also evaluate employee allowances, bonuses, gratuities, and performance-linked incentives.

Salary and Allowances: The Commission will look into potential changes in the current salary structure to make government jobs more appealing to the youth and enhance accountability and efficiency in operations.

Bonuses, Allowances, and Performance-Linked Incentives: The Commission will review current bonus schemes and might suggest new methods to reward high-performing employees. They will also assess the number and types of existing allowances to see if they are practical and if improvements are needed.

Tips and Retirement: The Commission is set to propose enhancements to gratuity and retirement perks for workers included in the National Pension System (NPS) and the new Unified Pension Scheme (UPS). Additionally, it will recommend upgrades to the pension framework for those employees not part of the NPS.