The Union Cabinet approved the Terms of Reference (ToR) of the 8th Central Pay Commission (CPC), formally constituting the Commission after its announcement in January 2025. The 8th CPC is chaired by Justice Ranjana Prakash Desai (Retd.) and has an 18-month mandate, with recommendations expected to take effect from January 1, 2026.

The CPC will review salary structures, allowances, and pension benefits for Central Government employees. The 7th CPC, implemented from January 1, 2016, had recommended a fitment factor of 2.57 with minimum pay of ₹18,000. An estimated 48 lakh Central Government employees and 65 lakh pensioners stand to benefit from the 8th CPC recommendations. State governments including Rajasthan typically follow the Centre's pay revision with their own adaptations.