Cabinet Approves 8th Pay Commission for Central Government Employees and Pensioners

NEW DELHI: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the establishment of the 8th Central Pay Commission to review the salaries of central government employees and the allowances of pensioners. The decision was announced by the Union Minister, Ashwini Vaishnaw.

Vaishnaw further stated that the chairman and two members of the commission will be appointed soon. Additionally, consultations will be conducted with central and state governments, as well as other stakeholders, to inform the Commission’s recommendations.

“The Prime Minister has approved the 8th Central Pay Commission for all employees of the central government,” Vaishnaw confirmed.

The Central Pay Commission is established by the government approximately every decade to revise the salary structure for government employees. Along with salary updates, the commission also reviews pension policies and defines its term of reference (ToR) for these areas.

Presently, there are over 49 lakh central government employees and nearly 65 lakh pensioners. The 7th Pay Commission, established in 2016, is set to conclude its term in 2026.

Under the 7th Pay Commission, central government employees include all civil servants and individuals paid from the consolidated fund of India. However, employees in public sector undertakings (PSUs), autonomous bodies, and gramin dak sevaks are excluded. For instance, employees at Coal India have separate pay scales.

The 7th Pay Commission introduced a fitment factor of 2.57, even though employee unions had demanded a factor of 3.68. The fitment factor is a multiplier used to determine salary and pension adjustments.

As a result, the minimum basic pay increased from ₹7,000 to ₹18,000 per month, while the minimum pension rose from ₹3,500 to ₹9,000. The maximum salary was set at ₹2,50,000 per month, with the maximum pension capped at ₹1,25,000.

The 8th Pay Commission’s recommendations are expected to have a significant impact on the salaries and pensions of central government employees and pensioners across the country.

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