8th Pay Commission Approved by Union Cabinet for Central Government Employees

8th Pay Commission Approved: The Union Cabinet has approved the formation of the 8th Pay Commission, aimed at revising the salaries and pensions of millions of Central government employees and retirees. The announcement was made by Union Minister Ashwini Vaishnaw on Thursday, January 16. This decision is expected to bring significant salary hikes and adjustments to the Dearness Allowance (DA), benefitting both current employees and pensioners.

8th Pay Commission: Highlights of the Announcement

• Salary Revisions: The 8th Pay Commission will introduce changes to the pay scales of Central government employees, addressing long-standing demands for salary hikes.

• Pension and Allowance Updates: Retired government personnel will also benefit from revised pensions and allowances under the new commission.

• Timeline: While the exact schedule for the commission’s establishment has not been revealed, Minister Vaishnaw stated that it is likely to be formed by 2026, with implementation targeted from January 1, 2026.

The decision to establish the 8th Pay Commission was taken during a Cabinet meeting chaired by Prime Minister Narendra Modi. In a tweet, PM Modi expressed his gratitude to government employees for their efforts in building a "Viksit Bharat" (Developed India) and highlighted the commission's role in improving quality of life and boosting consumption.

We are all proud of the efforts of all Government employees, who work to build a Viksit Bharat. The Cabinet's decision on the 8th Pay Commission will improve quality of life and give a boost to consumption. https://t.co/4DCa5skxNG
— Narendra Modi (@narendramodi) January 16, 2025
 

Key Changes Brought by the 7th Pay Commission:

• Fitment Factor: Under the 7th Pay Commission, the government adopted a fitment factor of 2.57, against the 3.68 proposed by employee unions. This factor is used to calculate salaries and pensions.

• Minimum Pay Increase: The basic pay for government employees rose from Rs 7,000 (6th Pay Commission) to Rs 18,000 per month.

• Pension Revisions: The minimum pension was increased from Rs 3,500 to Rs 9,000, while the maximum salary and pension were revised to Rs 2,50,000 and Rs 1,25,000, respectively.

The approval of the 8th Pay Commission comes just days ahead of the Budget 2025, reflecting the government’s commitment to addressing employee welfare and enhancing economic activity through increased consumption.