BS EDIT: Terms and Conditions

By Business StandardPublished On Oct 30, 2025

The Big Decision

The 8th Pay Commission has been set up to revise pay for 5 million employees and 6.9 million pensioners from January 1, 2026

The Panel

Headed by Justice Ranjana Desai, with Pulak Ghosh and Pankaj Jain, the panel will report in 18 months, possibly with an interim update

Fiscal Balance

The last pay hike added ₹1 trillion to expenses. The new panel must weigh fair pay against fiscal prudence and development needs

State Impact

States mirror CPC pay hikes. Sixteen states already spend over 20% of their budgets on salaries, straining their finances

Pay vs Market

At lower levels, government jobs pay better than private ones. At the top, it’s the reverse. The CPC must reflect real market conditions

Productivity Focus

Beyond pay, the CPC should link wages to performance. Better evaluation can boost efficiency and governance