Union Cabinet Approves 8th Pay Commission to Revise Salaries of Government Employees
The Union Cabinet has given the nod to set up the 8th Pay Commission, paving the way for salary and pension revisions for central government employees
16-01-2025The Union Cabinet has approved the establishment of the 8th Pay Commission to revise the salaries and pensions of central government employees and retirees. Union Minister Ashwini Vaishnaw announced the decision on Thursday, January 16. However, the timeline for setting up the commission is yet to be disclosed.
This significant move comes just before the presentation of Union Budget 2025 and is expected to result in a salary hike for millions of government employees and pensioners.
The 8th Pay Commission will build upon the reforms introduced by the 7th Pay Commission, which was implemented in January 2016 and is set to conclude its recommendations by the end of 2025. A committee has been formed by the central government to oversee the implementation process.
Reports indicate a possible increase in the fitment factor from 2.57 to 2.86, which plays a crucial role in calculating revised salaries and pensions. If approved, this adjustment could significantly raise the basic pay of central government employees. The fitment factor determines the multiplier used to calculate revised salaries based on the current basic pay.
Over the years, pay commissions have brought transformative changes to the salary structures of government employees:
7th Pay Commission (2016):
6th Pay Commission (2006):
These reforms laid the groundwork for the anticipated changes under the 8th Pay Commission.
The approval of the 8th Pay Commission is expected to positively impact millions of government employees and pensioners by increasing their disposable incomes. The resulting salary hike could boost consumer spending, which may, in turn, stimulate the economy ahead of the Union Budget 2025.
While the timeline for the commission's establishment remains unconfirmed, this development has raised expectations for further reforms and benefits for government employees.
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