Jan 16 Thursday 2025: The Union Minister Cabinet approved on Thursday to set up the 8th Pay Commission to revise central government employees’ salaries and pensioners’ allowance. Prime Minister Narendra Modi announced the Cabinet’s decision to implement the 8th Pay Commission at a Cabinet meeting. The 8th Pay Commission will improve the quality of life for government employees and give a boost to consumption.
Union Minister Ashwini Vaishnaw informed that the chairman and two members of the Commission will be appointed soon. Consultations will be held with central and state governments and other stakeholders, he added.
Prime Minister Narendra Modi wrote on X “We are all proud of the efforts of all Government employees, who work to build a Viksit Bharat. The Cabinet’s decision on the 8th Pay Commission will improve quality of life and give a boost to consumption.”
A pay commission is constituted by the government once every 10 years. This revises the salary structure, each pay commission has a term of reference (ToR). The Term of Reference (TOR) is a document that clearly defines its focus.
The 8th Pay Commission, approved by the Union Cabinet, aims to revise the salaries of approximately 50 lakh central government employees and adjust the allowances for 65 lakh pensioners. This move is expected to impact the economy, with the previous 7th Pay Commission resulting in an expenditure increase of Rs 1 lakh crore for fiscal 2016-17.
The 8th Pay Commission will begin in 2025, with its recommendations to be implemented before the end of the 7th Pay Commission’s term in 2026. The commission will ensure the salary and compensation of central government employees, with senior employees potentially seeing a 20% pay rise. Those who are at lower levels receive a 25% increase.
This decision is expected to be beneficial to around 1.15 crore central government employees and pensioners, including defense personnel, with the updated salaries and allowances likely to boost consumption and economic growth. The Cabinet’s approval of the 8th Pay Commission comes ahead of the Union Budget for the financial year 2025-26, which is scheduled to be presented in the coming weeks. Keep Reading Questiqa India and Questiqa Bharat for more updates.