Govt announces setting up of 8th Central Pay Commission for govt employees

The government announced the 8th pay commission for central government employees.

Union Minister Ashwini Vaishnaw announced on Thursday that Prime Minister Narendra Modi has approved the formation of the 8th Pay Commission for central government employees. The decision to set up the 8th Pay Commission was taken during a meeting of the Union Cabinet which was chaired by Prime Minister Narendra Modi.  The tenure of the Seventh Pay Commission ends in 2026. The decision to set up the 8th Pay Commission was taken by Prime Minister Narendra Modi, I&B Minister Ashwini Vaishnaw said.

Union Minister Ashwini Vaishnaw said, "Prime Minister has approved the 8th Central Pay Commission for all employees of Central Government."

#WATCH | Delhi: Union Minister Ashwini Vaishnaw says, "Prime Minister has approved the 8th Central Pay Commission for all employees of Central Government..." pic.twitter.com/lrVUD25hFu
ANI (@ANI) January 16, 2025

"As the 7th Pay Commission's term concludes in 2026, initiating the process in 2025 ensures sufficient time to receive and review recommendations before its completion," Union Minister r Ashwini Vaishnaw added.

He added "Following the commitment made by the Prime Minister to establish pay commissions in a regular rhythm, the 7th Pay Commission started in 2016, and its term will be completed in 2026".

Vaishnaw stated that setting up the 8th Central Pay Commission well before 2025 will ensure sufficient time to review and finalize its recommendations. This proactive approach will enable the government to implement the proposed changes effectively before the 7th Pay Commission's tenure ends.

The 7th Pay Commission was set up in 2016, and its term will end in 2026. Vaishnaw further said the chairman and two members of the Commission will be appointed soon.

The government set up the 7th Pay Commission in 2014, and its recommendations came into effect from January 2016 onwards. The pay commissions are, notably, set up once in 10 years to recommend the government on changing the pay structure and scale of its employees.

Since 1947, seven Pay Commissions have been constituted, with the last one implemented in 2016.  The pay 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.

Around 50 lakh central government employees, including defence personnel will benefit. Approximately 65 lakh pensioners, including defence persons, will also see an uptick in their pensions, according to the sources. The 7th pay commission saw an expenditure increase of Rs 1 lakh crore for FY 2016-17. This will provide a significant boost to the Consumption and economic growth, along with improved quality of life for govt employees.

*With Agency Inputs