8th Pay Commission For Govt Employees, Pensioners Gets Cabinet Approval | Check Details

SOURCE : NEW18 NEWS

Last Updated:January 16, 2025, 16:47 IST

8th Pay Commission: The central government on Thursday approved the constitution of the 8th Central Pay Commission for government employees, which will submit its report by 2026.

8th Pay Commission: The Union Cabinet on Thursday approved the constitution of the 8th Central Pay Commission to review and recommend salary adjustments for over one crore central government employees and pensioners. According to the reports, the 8th Pay Commission will come into force on January 1, 2026.

During a Cabinet briefing, Union Minister Ashwini Vaishnaw on Thursday said, “Prime Minister has approved the 8th Central Pay Commission for all employees of Central Government.”

Vaishnaw said that the chairman and two members of the 8th Pay Commission will be appointed soon.

According to government sources, “Around 50 lakh central government employees, including defence personnel will benefit. About 65 lakh pensioners, including defence persons, will also see an uptick in their pensions.”

About 4 lakh employees in Delhi will benefit, including defence and Delhi government employees, they said.

“This will provide a significant boost to the Consumption and economic growth, along with improved quality of life for govt employees,” the sources said.

The 7th pay commission saw an expenditure increase of Rs 1 lakh crore for FY 2016-17.

The latest decision was taken at a meeting of the Union Cabinet, chaired by Prime Minister Narendra Modi, I&B Minister Ashwini Vaishnaw said in the announcement.

The 8th Pay Commission has been announced days before the Union Budget 2025-26, which will be presented by Finance Minister Nirmala Sitharaman on February 1, 2025.

8th Pay Commission: How Much Salary Hike Will Govt Employees Get?

Just before the Union Budget 2025, as central government employees have got a 8th Pay Commission bonanza, reports have earlier suggested that the central government employees might see a 186 per cent jump in their minimum salaries. However, this is just a speculation. The exact amount will be known only after the 8th Pay Commission report, which will be submitted by 2026.

Shiv Gopal Mishra, Secretary (staff side) of the National Council of Joint Consultative Machinery (JCM), has earlier said he expects a fitment factor of at least 2.86. It is 29 basis points (bps) higher as compared with 2.57 fitment factor under the 7th Pay Commission.

If the government approves the fitment factor of 2.86, the minimum salary of government employees will shoot up by 186 per cent to Rs 51,480, compared with the current payout of Rs 18,000, according to reports.

Any further hike in fitment factor will lead to commensurate rise in the salaries.

A hike in fitment factor raises both pension and salaries of the employees.

Under the 8th Pay Commission, pensions are also expected to increase by 186 per cent to Rs Rs 25,740, compared with the current pension of Rs 9,000. This calculation holds true if the currently expected fitment factor of 2.86 gets through.

Currently, the employees get a minimum basic salary of Rs 18,000 per month under the 7th Pay Commission, which was increased from the 6th Pay Commission’s Rs 7,000.

What Is A Pay Commission?

A Pay Commission is a government-appointed body tasked with determining salary structures, allowances, and benefits for government employees. Its recommendations significantly influence the lives of millions of employees and pensioners across the nation. Since India’s independence in 1947, seven pay commissions have been established.

Typically convened every decade, the Central Pay Commission evaluates and proposes adjustments to pay scales, benefits, and allowances for central government employees. These recommendations take into account various economic factors, such as inflation, to ensure fair compensation.