8th Pay Commission approved for revision of salaries & pensions

January 17, 2025 Hot from the Oven Valli Sarvani

8th Pay Commission approved for the revision of salaries & pensions

In a move impacting millions of central government employees and pensioners, the Union Cabinet has approved the formation of the 8th Pay Commission.

The commission will revise salaries, allowances, and pensions, aiming to enhance the financial welfare of government personnel.

Chaired by Prime Minister Narendra Modi, the Cabinet’s decision marks the beginning of a new chapter for over 49 lakh employees and nearly 65 lakh pensioners.

Union Minister Ashwini Vaishnaw confirmed that the commission’s chairman and two members will be appointed shortly.

Additionally, consultations with central and state governments, as well as other stakeholders, will be conducted to finalize recommendations.

Pay commissions, set up once every 10 years, are tasked with revising the pay structure for central government employees.

They also redefine pension payments and address other financial benefits. The 7th Pay Commission, established in 2016, significantly increased salaries and pensions.

For instance, the minimum basic pay rose from ₹7,000 to ₹18,000, while the minimum pension increased from ₹3,500 to ₹9,000.

Employee unions had earlier demanded a fitment factor of 3.68 for salary revisions under the 7th Pay Commission.

However, the government decided on a fitment factor of 2.57, which became the basis for calculating revised pay scales and pensions.

Central government employees include those working in civil services and drawing salaries from the Consolidated Fund of India.

However, employees of public sector undertakings (PSUs) and autonomous bodies, like Coal India workers and gramin dak sevaks, are not covered under pay commissions.

These employees follow separate pay structures based on their organizations.

With the 7th Pay Commission’s term ending in 2026, the 8th Pay Commission is expected to play a pivotal role in shaping the future salary framework.

Its recommendations will ensure fair compensation and address evolving economic needs.

The government’s timely step highlights its commitment to improving the financial conditions of employees and pensioners, fostering motivation and efficiency in public service.

Image by Mohamed Hassan from Pxhere (Free for commercial use / CC0 Public Domain)

Image Published on September 26, 2018