India, Oct. 28 -- The Indian Cabinet on Tuesday approved the Terms of Reference of 8th Central Pay Commission.

It is the Commission that decides on the pay structure and retirement benefits of central government employees.

The 8th Central Pay Commission will be a temporary body.

It will make its recommendations within 18 months of the date of its constitution.

" It may consider, if necessary, sending interim reports on any of the matters as and when the recommendations are finalized," the Indian government said in a statement.

The economic conditions in the country and the need for fiscal prudence;

The need to ensure that adequate resources are available for developmental expenditure and welfare measures;

The likely impact of the r...