8th Pay Commission Approved: 1.15 Cr Central Employees & Pensioners to Benefit

New Delhi, Jan 16 (PTI) Prime Minister Narendra Modi on Thursday approved setting up the 8th Pay Commission to revise salaries of nearly 50 lakh central government employees and allowances of 65 lakh pensioners.

The chairman and two members of the Commission will be appointed soon, I&B Minister Ashwini Vaishnaw told reporters here.

"Prime Minister has approved 8th Central Pay Commission for central government employees," the minister said.

The term of the 7th Pay Commission will end in 2026.

Since 1947, seven Pay Commissions have been constituted, with the last one implemented in 2016.

As the 7th Pay Commission's term concludes in 2026, initiating the process in 2025 ensures sufficient time to receive and review recommendations before its completion, the minister added.

He 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.

Pay commissions hold extensive consultations with central and state governments and other stakeholders before giving recommendations to the government. The pay commission has a key role in deciding salary structures, benefits and allowances for government employees. Most of the state-owned organisations follow the commission's recommendations.

The 7th Pay Commission was constituted in 2014 and its recommendations were implemented on January 1, 2016.

Sources said around 50 lakh central government employees, including defence personnel, will benefit from the decision.

Also, about 65 lakh pensioners, including defence persons, will also see an uptick in their pensions, they added.

In Delhi alone, about 4 lakh employees will benefit, including defence and Delhi government employees, from the recommendations of the panel. Delhi is going to assembly polls on February 5, 2025.

In past, salaries of Delhi government employees increased with the central pay commission, sources added.

The 7th pay commission saw an expenditure increase of Rs 1 lakh crore for fiscal 2016-17.

Implementation of the pay panel's recommendations provides a significant boost to consumption and economic growth, along with improved quality of life for government employees.

Usually, every 10 years, the central government constitutes a pay commission to revise the remuneration of its employees.

The pay commission also recommends the formula for the revision of dearness allowance and dearness relief for central government employees and pensioners with a view to compensating them for inflation.

Several state governments also revise the remuneration of their employees on the lines of the central pay commission.