The Union Cabinet chaired by Prime Minister Narendra Modi on Thursday cleared the formation of the 8th Pay Commission to revise the salaries and pensions of nearly 1.15 crore Central government employees and pensioners. The decision comes ahead of the…
Tribune News Service
The Union Cabinet chaired by Prime Minister Narendra Modi on Thursday cleared the formation of the 8th Pay Commission to revise the salaries and pensions of nearly 1.15 crore Central government employees and pensioners. The decision comes ahead of the crucial Delhi Assembly elections.
1.15 cr central staff, pensioners to benefit
- Around 50L Central government employees, including defence personnel, along with nearly 65L pensioners are set to benefit from the move
- The 8th Pay Commission is likely to be formed by 2026; the term of the 7th Pay Commission, set up in 2016, ends on December 31, 2025
- A chairman and two members will soon be appointed; they will hold talks with Central and state governments, besides PSUs and other stakeholders
Sources in the government said around 50 lakh Central government employees, including defence personnel, along with nearly 65 lakh pensioners will benefit from the move.
Union Minister for Information and Broadcasting Ashwini Vaishnaw, announcing the Cabinet decision, said the commission was likely to be formed by 2026 and reiterated that the recommendations of the 7th Pay Commission had already been implemented.
The 7th Pay Commission was set up in 2016 and its term will end on December 31, 2025. It had seen an expenditure increase of Rs 1 lakh crore for financial year 2016-17. With Delhi being the seat of all Central government offices and lakhs of employees residing here, the decision by the BJP-led government is being seen as an attempt to woo the key voter segment in view of the Assembly elections. As many as four lakh Delhi government employees stand to gain from the decision. “Typically, Delhi government employees see a hike in their salaries with the central pay commission,” said sources.
The announcement also comes ahead of the Union Budget presentation by Finance Minister Nirmala Sitharaman on February 1.
Prime Minister Narendra Modi said the decision would boost consumption and improve the quality of life. “We are all proud of the efforts of all government employees, who work to build a Viksit Bharat. The Cabinet’s decision will improve the quality of life and give a boost to consumption,” he said in a post on X.
Vaishnaw, while briefing the media after the Cabinet meeting, said: “PM Modi has approved the formation of the 8th Central Pay Commission for the benefit of all central government employees and pensioners.”
“Since 1947, seven pay commissions have been formed. The 7th Pay Commission came into effect in 2016. Its tenure will conclude in 2026. By deciding to form the 8th Pay Commission in 2025, we have sufficient time to receive recommendations well before the completion of the period of the 7th commission,” Vaishnaw said.
The minister added that the process would involve exhaustive consultations with central and state governments, besides public sector undertakings and other stakeholders. “A chairman and two members will soon be appointed for the commission,” he said.
Pay commissions are generally formed once in 10 years to recommend the fitment factor (multiplier used for calculating salaries and pensions) and other modalities.
The implementation of the 8th commission is expected to result in a salary hike for Central government employees along with their dearness allowance (DA).
The commission plays a crucial role in determining salary structures, allowances and other benefits for government employees, and its recommendations significantly impact millions of workers and pensioners across the country.