New Delhi: The Union Cabinet has made a significant move by approving the establishment of the 8th Pay Commission, aimed at revising salaries for central government employees and adjusting pensioners' allowances. This decision was reached during a Cabinet meeting led by Prime Minister Narendra Modi, as confirmed by Union Minister Ashwini Vaishnaw.
The commission will soon see the appointment of a chairman along with two additional members. These appointments are crucial as they will spearhead the review process that affects over 49 lakh central government employees and approximately 65 lakh pensioners. The minister also highlighted that consultations with both central and state governments, along with other stakeholders, will be integral to the commission's work.
#WATCH | Delhi: Union Minister Ashwini Vaishnaw says, "Prime Minister has approved the 8th Central Pay Commission for all employees of Central Government..." pic.twitter.com/lrVUD25hFu
— ANI (@ANI) January 16, 2025
The establishment of a pay commission is a routine action taken by the central government approximately every decade to adjust the salary structure for its employees. Each commission is tasked with defining its terms of reference (ToR), which outlines its focus areas, including pension payments. The previous commission, the 7th Pay Commission, was set up in 2016 and is expected to conclude its term in 2026.
According to the stipulations of the 7th Pay Commission, eligibility for salary revisions includes all civil service personnel within the central government who receive their salaries from the consolidated fund of India. However, employees of public sector undertakings (PSUs) and autonomous bodies are not covered under this framework. For instance, individuals employed by Coal India would not be included in this pay structure.
The 7th Pay Commission brought about notable changes in salary structures based on demands from employee unions for a 3.68 fitment factor. Ultimately, the government settled on a 2.57 fitment factor, which resulted in a minimum basic pay increase to ₹18,000 per month, up from ₹7,000 established by the previous commission. Additionally, minimum pensions saw an increase from ₹3,500 to ₹9,000, with maximum salaries reaching ₹2,50,000 and maximum pensions set at ₹1,25,000.
The formation of the 8th Pay Commission marks a pivotal moment for government employees and pensioners alike. With expected consultations and strategic appointments underway, stakeholders are keenly awaiting how these changes will impact their financial futures.
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