Union Cabinet approves 8th Pay Commission: Key details and benefits
The Union Cabinet, led by Prime Minister Narendra Modi, approved the 8th Pay Commission on Thursday. This decision will revise salaries of central government employees and allowances for pensioners. Union Minister Ashwini Vaishnaw confirmed the move, emphasizing its significance for over 49 lakh central employees and nearly 65 lakh pensioners.
The government sets up a pay commission every 10 years to recommend salary revisions. Since independence, India has seen seven pay commissions. The 7th Pay Commission, established in 2016, will end its term in 2026. Vaishnaw highlighted that initiating the 8th Pay Commission early provides ample time for recommendations.
The commission will soon appoint a chairman and two members. It will consult central and state governments, along with other stakeholders, to ensure comprehensive input. This decision also benefits around four lakh employees in Delhi, including state government and defense personnel.
The pay commission’s recommendations aim to boost salaries and allowances for employees and pensioners. Nearly 50 lakh central employees, including defense personnel, will see a salary hike. Additionally, 65 lakh pensioners, also including defense retirees, will receive enhanced benefits.
The timing of the decision aligns with two major events—the Union Budget presentation on February 1, 2025, and the Delhi assembly elections on February 5. Analysts believe this move could improve government employees’ quality of life while stimulating economic consumption.
Prime Minister Modi shared his optimism on social media, stating the 8th Pay Commission will “improve quality of life and give a boost to consumption.” This decision underscores the government’s focus on addressing economic concerns and supporting its workforce.
With the commission set to deliver recommendations in the coming years, central government employees and pensioners eagerly await details on salary and allowance revisions. The government aims to complete the process efficiently and implement the changes to enhance employee benefits nationwide.
