The Cabinet has approved the 8th Pay Commission's terms of reference, which is likely to be effective from Jan 2026. The historical data underscores the significant fiscal impact: the 7th CPC alone resulted in a Rs 100,000 crore financial outlay. But this was accompanied by a sharp downturn in the real pay increase for the 7th CPC (14.3%) from 54% in the 6th CPC.