Union Cabinet Approves Formation of 8th Pay Commission
New Delhi, January 16, 2025 — In a significant move, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the establishment of the 8th Central Pay Commission. The commission will be tasked with revising the salaries, pensions, and allowances of central government employees and pensioners, a decision expected to benefit millions of individuals across the country.
The 7th Pay Commission, which was constituted in 2016, is nearing the end of its tenure, with its recommendations valid until December 31, 2025. By initiating the process for the 8th Pay Commission well in advance, the government aims to ensure the timely implementation of its recommendations and avoid delays that could impact employees and pensioners.
Union Minister Ashwini Vaishnaw announced that the new commission would comprise a chairman and two members, whose appointments are expected to be finalized in the coming months. The commission’s scope includes extensive consultations with stakeholders, including central and state governments, public sector undertakings, and employee representatives, to address the diverse concerns of the workforce and ensure equitable recommendations.
This decision is set to impact approximately 50 lakh central government employees and nearly 65 lakh pensioners. It is anticipated to lead to salary revisions, adjustments in dearness allowances, and enhanced benefits that align with changing economic conditions. The establishment of the 8th Pay Commission reflects the government’s continued commitment to the welfare of its workforce and its recognition of their role in nation-building.
Prime Minister Modi, while addressing the media, stated, “Government employees are an essential pillar in our mission to build a prosperous and self-reliant India. The decision to constitute the 8th Pay Commission reinforces our commitment to improving their quality of life and supporting their invaluable contributions.”
Historically, Pay Commissions have been constituted every decade since 1947, playing a crucial role in determining the salary structure, allowances, and benefits for government employees. The 7th Pay Commission had recommended a 14% salary hike, which was implemented in January 2016, significantly boosting the income of government officials and pensioners.
The formation of the 8th Pay Commission is seen as a step toward ensuring that government employees and pensioners continue to receive fair compensation that reflects the evolving economic landscape. Its recommendations are expected to influence not just government employees but also the broader economy by driving increased consumption and demand.
By taking this proactive step, the Union Government has reaffirmed its focus on ensuring fairness, inclusivity, and economic stability, setting the stage for a smoother transition to updated pay structures.