The Union Cabinet, chaired by Prime Minister Narendra Modi, on Tuesday approved the Terms of Reference of the 8th Central Pay Commission, which will take up the issue of increasing salaries of Central government employees and payments to pensioners.

The 8th Central Pay Commission will be a temporary body. The Commission will comprise one Chairperson; one Member (part-time) and one Member-Secretary. 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, according to the terms of reference approved by the Cabinet.