The Union Cabinet chaired by Prime Minister Narendra Modi took a major decision on Thursday. Union Minister Ashwini Vaishnav announced the formation of the 8th Pay Commission. Its objective is to revise the salaries, pensions and allowances of central government employees and pensioners. This announcement came a few days before Budget 2025.
What is 8th Pay Commission?
This commission will make recommendations for changes in the salaries, dearness allowance (DA) and pension of central government employees and retired employees. Allowances based on inflation will also be included in this budget.
How much will the salary increase?
The government has not yet officially announced the percentage of salary increase. However, as per reports, the minimum basic pay may increase from ₹18,000 to ₹51,480 depending on the fitment factor.
What is fitment factor?
It is a multiplier used to calculate salaries and pensions. It takes into account factors such as inflation, financial position of the government and employee needs.
Who will benefit?
– About 50 lakh central government employees (including defense personnel).
– About 65 lakh pensioners (including defense retirees).
When will the 8th Pay Commission be implemented?
According to reports, this commission will be constituted by 2026 and its recommendations are expected to come into effect from January 1, 2026.
What is the function of Pay Commission?
This commission, constituted every 10 years, reviews the salaries, allowances, pensions and bonuses of government employees. It makes recommendations based on inflation, economic conditions and the state of the exchequer.
Seven pay commissions have already been constituted
Since 1946, seven pay commissions have been constituted. The recommendations of the Seventh Pay Commission (implemented in 2016) are currently being implemented. This new step of Modi government will increase the cycle of 10 years. This news has brought great relief to government employees and pensioners. Now it remains to be seen what impact the Commission’s recommendations will have on the common man’s pocket.
