Cabinet approves 8th Pay Commission for employees, pensioners

New Delhi

The Union Cabinet has approved the creation of the 8th Pay Commission, which will address salary revisions for Central government employees and pensioners. Union Minister Ashwini Vaishnaw announced that Prime Minister Narendra Modi gave approval for this move, emphasizing that the commission will benefit employees and pensioners across the government sector.

Since 1947, seven Pay Commissions have been set up, with the 7th Pay Commission implemented in 2016 and scheduled to conclude in 2026. The 8th Pay Commission will be established in 2025 to allow enough time for its recommendations to be considered before the 7th Commission’s tenure ends. The process will include consultations with state governments, the central government, public sector units (PSUs), and other relevant stakeholders. A chairman and two members will be appointed soon.

The formation of the 8th Pay Commission will likely impact around 50 lakh central government employees, including defense personnel, and more than 65 lakh pensioners. Pay Commissions typically review salary structures and pension benefits every 10 years, with the last revision coming into effect in January 2016. Employee unions have long called for the creation of the 8th Pay Commission, hoping for a salary revision starting in January 2026. They are also requesting a fitment factor of 2.86 for a significant wage increase.

1.    Panel given 11 months for recommendations.

2.    Fitment factor key to salary revision.

3.    Current fitment factor set at 2.57.

4.    Employee unions demand 3.68 fitment factor.

5.    Minimum salary rise from Rs 18,000.

6.    Pension increase based on fitment factor.

7.    Pension increase likely with 2.86 factor.

8.    Potential salary revision with 1.92 factor.

9.    Salary, pension hikes linked to fitment factor.

10.                       New panel to assess economic situation.