Formation of the 8th Pay Commission: Justice Ranjana Prakash Desai to Lead with Focus on Performance-Based Salary Structure

The central government has officially announced the formation of the 8th Pay Commission, led by Justice Ranjana Prakash Desai. This commission aims to create a performance-based salary structure for government employees, focusing on accountability and responsibility. It will review existing bonuses and allowances, potentially leading to significant changes in the salary framework. The commission is expected to submit its report within 18 months, with recommendations that could greatly impact employee pensions and benefits. Stay tuned for more updates on this important development.

By Narendra Chaudhary Nov 5, 2025, 13:50 IST

Government Announces Members and Framework of the 8th Pay Commission

On Tuesday, the central government revealed the names of the remaining two members of the 8th Pay Commission along with its operational framework. The primary aim of this new commission is to establish a salary structure that emphasizes responsibility, accountability, and performance among employees for salary increments. The commission will recommend necessary adjustments to salaries, allowances, bonuses, pensions, and other benefits to create a framework that encourages improved work performance.

Details of the Notification

According to the notification, Justice Ranjana Prakash Desai will serve as the chairperson, with Professor Pulak Ghosh as a part-time member and Pankaj Jain as the member secretary. The commission will be headquartered in New Delhi and is expected to submit its report to the government within 18 months. It may involve experts, advisors, and institutions in its work. If changes are made similar to previous pay commissions, a significant increase in salaries and pensions is anticipated. For instance, if the fitment factor rises, a monthly pension of ₹25,000 could potentially increase to ₹50,000.

Review of Bonuses and Allowances

The commission will evaluate the current bonus scheme along with all allowances, assessing their utility and conditions. Unnecessary allowances may be eliminated if deemed necessary. Additionally, the commission will review the death-cum-retirement gratuity for employees under the National Pension System (NPS). Recommendations will also be made regarding pension and gratuity rules for employees who are outside the NPS and are under the old pension scheme.

Potential Impact on Allowances

While no official information has been released yet, it is speculated that the following allowances may be affected: travel allowance, special duty allowance, small area allowances, and older departmental allowances (such as typing/clerk allowances). The government's objective behind these changes is to simplify and clarify the salary structure.