NEW DELHI: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the formation of the 8th Pay Commission to recommend periodic salary revisions for central government employees. The commission will submit recommendations in such a way that the pay revision will come into effect from January 1, 2026. Union Minister Ashwini Vaishnaw announced that the chairperson and two members of the commission would be announced soon.
There are indications that the commission might recommend setting the basic salary for central government employees at ₹41,000, considering various economic indicators, including inflation. This move is expected to benefit 49 lakh central government employees and 65 lakh pensioners.
Salary revision once in every 10 years
The Pay Commission is constituted every ten years. The 7th Pay Commission, formed on February 28, 2014, by the Manmohan Singh government, submitted its recommendations on November 19, 2015, which came into effect on January 1, 2016. As per the 2.57 fitment factor recommended by the 7th Pay Commission, the basic salary increased from ₹7,000 to ₹17,990.
Employees’ demand
Employee unions are demanding that the fitment factor be increased to 2.86, which would raise the basic salary to ₹51,451.