India, Oct. 29 -- The Union Cabinet chaired by Prime Minister Narendra Modi on Tuesday approved the terms of reference for the Eighth Pay Commission, setting in motion the process for increasing the salaries and pensions of nearly 12 million central government employees and pensioners with effect from January 1, 2026.

To be sure, the panel will take time to make its recommendations -- it has to do so within 18 months of its constitution -- which means the increases will likely be with retrospective effect. "The specific date will be decided once the interim report comes in...But, mostly it should be January 1, 2026," I&B Minister Ashwini Vaishnaw said at a press briefing on Tuesday, responding to a question on the date of implementation ...