8th Pay Commission Approved: Highlights and Impact on Central Government Employees

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the establishment of the 8th Pay Commission to revise salaries of central government employees and pensions for retirees.

 Union Minister Ashwini Vaishnaw confirmed that the chairman and two members of the commission will be appointed soon. The process will include consultations with central and state governments and other stakeholders.

Prime Minister Modi expressed confidence that this decision will enhance consumption and improve living standards, stating, “We are proud of our government employees. This move will contribute to building a developed India (Viksit Bharat).”

Pay commissions, constituted every decade, are tasked with revising the salary structures of central government employees and pensions. The 7th Pay Commission, implemented in 2016, increased the minimum basic salary from ₹7,000 to ₹18,000 and the minimum pension from ₹3,500 to ₹9,000. The maximum salary and pension were set at ₹2,50,000 and ₹1,25,000, respectively. It is set to expire in 2026.

Central government employees covered by pay commissions include those in civil services and paid through the Consolidated Fund of India. Public sector undertaking (PSU) employees, autonomous bodies, and gramin dak sevaks are excluded, as they have distinct pay structures.

The establishment of the 8th Pay Commission will impact approximately 49 lakh employees and 65 lakh pensioners, aiming to bring significant improvements to their financial wellbeing.