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Graphic of the day: 2026 Pay Target

The Cabinet clearance sets a high fiscal benchmark for the 8th Pay Commission's expected recommendations

By Samreen Wani
Last Updated: Oct 30, 2025, 16:13 IST1 min
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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.
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.

First Published: Oct 30, 2025, 16:15

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