8th Pay Commission Announced: Implementation, Beneficiaries; Check Key Details Here

8th Pay Commission Approved: The commission will oversee adjustments to the pensions, allowances, and salaries of central government employees and retirees 

Approximately 50 lakh central government employees, including those in the defence sector, are set to benefit from the 8th Pay Commission

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The cabinet has approved the formation of the 8th Pay Commission to review and revise the salaries of Central government employees, Union Minister Ashwini Vaishnaw announced on Thursday, just ahead of Budget 2025, which is scheduled for February 1, 2025.

What Is The 8th Pay Commission?

The 8th Pay Commission will oversee adjustments to the pensions, allowances, and salaries of central government employees and retirees. Apart from salary increases, the revisions will also address the Dearness Allowance (DA), which is linked to inflation, ensuring that the compensation reflects the current economic conditions. 

When Will The 8th Pay Commission Be Implemented?

The 8th Pay Commission is expected to be established by 2026, as confirmed by Union Minister Ashwini Vaishnaw. Reports suggest that the commission's recommendations, which will include revisions to salaries, pensions, and allowances for central government employees, are likely to come into effect starting from January 1, 2026. 

8th Pay Commission Salary Hike

While the government has not yet disclosed specific details regarding the salary hikes under the 8th Pay Commission, estimates suggest that the fitment factor could range from 2.57 to 2.86. According to various reports, with a fitment factor of 2.86, the minimum basic salary for central government employees may rise to Rs 51,480, up from Rs 18,000.

Who Are The Beneficiaries Of The 8th Pay Commission?

Approximately 50 lakh central government employees, including those in the defence sector, are set to benefit from the 8th Pay Commission. In addition, around 65 lakh central government pensioners, including defence retirees, will see revisions to their pensions following the updates.

8th Pay Commission: When Is The Pay Commission Constituted?

Pay Commissions in India are generally constituted once every ten years. Since 1946, the government has established a total of seven pay commissions to review and recommend changes to the salaries, pensions, and allowances of central government employees.

Currently, the 7th Pay Commission, which was set up in 2014 by the UPA government under Prime Minister Manmohan Singh, is in effect. Its recommendations were implemented on January 1, 2016, and are still being followed. The 8th Pay Commission is expected to be formed after the conclusion of the 7th Pay Commission’s term, which will likely occur by 2026.