The Union Cabinet, led by Prime Minister Narendra Modi, has approved the formation of the 8th Central Pay Commission. This was announced on January 16, 2025. The commission will review and suggest new salary and pension structures for over one crore central government employees and pensioners. Its report is expected by 2026, and the recommendations will take effect from January 1, 2026.
Union Minister Ashwini Vaishnaw shared this update during a Cabinet briefing. He said the Prime Minister has approved the formation of the new commission. Soon, a chairman and two members will be appointed to start the review process.
According to reports, around 50 lakh employees, including defence personnel, and 65 lakh pensioners will benefit from the revised pay structure. In Delhi alone, nearly 4 lakh employees, including those working for the Delhi government, are expected to see salary improvements.
This move is expected to help the economy by increasing spending and improving the standard of living for government workers and pensioners. The previous 7th Pay Commission, implemented in 2016, added an extra ₹1 lakh crore to government spending in the fiscal year 2016-17.
Reports suggest that under the 8th Pay Commission, minimum salaries for central government employees could rise by 186%. However, the final figures will only be confirmed once the commission submits its report.
Shiv Gopal Mishra, Secretary (staff side) of the National Council of Joint Consultative Machinery (JCM), expressed hopes for a fitment factor of 2.86 under the new commission. The 7th Pay Commission had implemented a fitment factor of 2.57.
If the new fitment factor is approved, the minimum salary of government employees could increase from ₹18,000 to ₹51,480. Similarly, pensions might rise from ₹9,000 to ₹25,740. If the fitment factor is further increased, salaries and pensions will also go higher.
What is a Pay Commission?
A Pay Commission is a body set up by the government to review and revise salaries, allowances, and pensions for government employees. India has seen seventh pay commissions since independence in 1947. These commissions are usually formed every 10 years to adjust pay structures according to inflation and other economic factors.
The announcement of the 8th Pay Commission is significant as it comes just weeks before Finance Minister Nirmala Sitharaman is set to present the Union Budget 2025-26 on February 1, 2025.
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Central Government Approves 8th Pay Commission to Revise Salaries and Pensions
The Union Cabinet, led by Prime Minister Narendra Modi, has approved the formation of the 8th Central Pay Commission. This was announced on January 16, 2025.
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