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The Union Cabinet on Thursday approved to set up 8th Pay Commission for the central government employees. The commission will revise salaries of the government employees and allowances of the pensioners.
As the 7th Pay Commission's term concludes in 2026, the Cabinet has announced the eight pay commission.
Purpose of Today’s Announcement
Since 1947, seven Pay Commissions have been constituted, with the last one being implemented in 2016. The decision came today with the sole aim that initiating the process in 2025 ensures sufficient time to receive and review recommendations before its completion.
The decision to set up the 8th Pay Commission was reportedly taken at a Cabinet meeting chaired by Prime Minister Narendra Modi .
"I want to inform you all that the Prime Minister has approved the 8th Central Pay Commission for all employees of Central Government," informed Union Minister Ashwini Vaishnaw.
When Will 8th Pay Commission Come Into Effect?
The recommendations of the 8th Pay Commission are likely to come into effect from January 1, 2026.
Once it comes into effect, it will lead to revision in salaries, including Dearness Allowance (DA) and Dearness Relief (DR) for pensioners.
Expected Salary Hike Once 8th Pay Commission Comes Into Effect:
The Central government employees are expected to witness a significant salary hike once the 8th Pay Commission's recommendations come into effect.
- The revised pay likely to be between 2.5 and 2.8 times the basic pay.
- Minimum basic pay to may increase to around Rs 34,560
- Minimum pension likely to jump to Rs 17,200.
Earlier, the 7th Pay Commission had introduced a fitment factor of 2.57, increasing the minimum basic salary by Rs 11,000 (from Rs 7,000 to Rs 18,000) per month.
Who All Are Covered Under The Pay Commissions?
All central government employees in the civil services and those who are paid from the consolidated fund of India.
Why A Pay Commission?
The central government constitutes pay commissions once every decade to revise the salary structure of its employees. A pay commission also decides the pension payments.
Implementation of a pay commission not only revises the salary structure of central government employees but it also has a term of reference (ToR), which broadly defines its focus.
