8th Pay Commission for Central government employees approved ahead of Budget 2025

8th Pay Commission News: The Union Cabinet has approved the implementation of the 8th Pay Commission to revise salaries of nearly 50 lakh Central government employees, Union Minister Ashwini Vaishnaw announced on Thursday, January 16. The implementation of the 8th Pay Commission will not only lead to salary hikes for the Central government employees, but also an adjustment in the Dearness Allowance (DA).

The 8th Pay Commission will also revise the pensions and allowances of 65 lakh Central government retirees. Government employees and retirees had long been expecting a revision of their pay scales, which is now possible with the setup of the 8th Pay Commission.

The announcement that the Union Cabinet has approved the 8th Pay Commission has come days ahead of the Budget 2025 announcements.

While Ashwini Vaishnaw has confirmed that the Cabinet has approved the 8th Pay Commission for Central government employees, the exact date for its setup has not been announced yet.

8th Pay Commission date: What we know so far

1. The Union minister has, however, announced that the commission will likely be formed by 2026. According to the reports, the 8th Pay Commission will come into force on January 1, 2026.

2. Ashwini Vaishnaw said the chairman and two members will soon be appointed to oversee the rollout of the 8th Pay Commission.

3. The decision to set up the 8th Pay Commission was taken at a meeting of the Cabinet chaired by Prime Minister Narendra Modi, I&B Minister Ashwini Vaishnaw said in the announcement.

He said, “For your awareness, our Prime Minister has approved the establishment of the 8th Central Pay Commission for all Central government employees.”

Ashwini Vaishnaw said the setting up of the new Pay Commission in 2025 will ensure that its recommendations are received well before the completion of the term of the seventh pay panel. Vaishnaw said consultations will be held with central and state governments and other stakeholders.

7th Pay Commission: What changes it brought?

1. Employee unions demanded a 3.68 fitment factor when it came to the salary revision for the 7th Pay Commission, but the government decided on a fitment factor of 2.57. The fitment factor is a multiplier used for calculating salaries and pensions.

2. This led to the minimum basic pay for government employees to be ₹18,000 per month, compared to ₹7,000 in the 6th Pay Commission. 

Also Read | 7th Pay Commission: What is Dearness Allowance (DA) and when is hike announced for central government employees?

3. The minimum pension also rose from ₹3,500 to ₹9,000. The maximum salary became ₹2,50,000, and the maximum pension became ₹1,25,000.

The 7th Pay Commission was set up in 2016, and its term will end on December 31, 2025. Ahead of the end of term for the 7th Pay Commission, a decision has been taken to set up the 8th Pay Commission to revise the salaries of the Central government employees.

Who benefits from 8th Pay Commission?

1. 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.

2. There are over 49 lakh Central government employees and nearly 65 lakh pensioners who will benefit from the implementation of the 8th Pay Commission.

The Central Pay Commissions are typically set up once every decade to evaluate and suggest modifications to pay scales, allowances and benefits for central government employees, considering various economic indicators, including inflation.

Since 1947, the government has constituted seven pay commissions. The pay commission plays a key role in deciding salary structures, benefits and allowances for government employees. Most state-owned organisations follow the commission's recommendations.