<h1>Government approves terms for 8th Central Pay Commission to review pay, allowances, pensions, and fiscal impact by 2026</h1> The Union Cabinet approved the terms of reference for the 8th Central Pay Commission, which will review salaries, allowances and working conditions for roughly 50 lakh central employees (including defence personnel) and 69 lakh pensioners, with likely implementation from January 1, 2026. The commission, chaired by a former Supreme Court judge, must submit a final report within 18 months and may issue interim reports; its mandate includes examining emoluments in central public sector undertakings and the private sector, unfunded pension costs, fiscal prudence and likely impact on state finances, following consultations with ministries, states and staff representatives.