8th Pay Commission News
On January 16, 2025, the Union Cabinet, led by Prime Minister Narendra Modi, approved the constitution of the 8th Pay Commission to review and recommend revisions in the salary and pension structures for central government employees and pensioners. This decision aims to ensure timely implementation of the commission’s recommendations from January 1, 2026, as the 7th Pay Commission’s term concludes in 2026.
The 8th Pay Commission is expected to propose a significant increase in the basic pay for central government employees. Speculations suggest that the minimum basic pay could rise by approximately 186%, potentially setting the new minimum at ₹51,480 per month, with a fitment factor of 2.86. This adjustment would also enhance pensions and other retirement benefits, such as the Employees’ Provident Fund (EPF) and gratuity.
The establishment of the 8th Pay Commission is anticipated to positively impact over one crore central government employees and pensioners, improving their quality of life and boosting consumption. The commission will conduct extensive consultations with stakeholders, including state representatives, to formulate its recommendations. The government will announce the appointment of the commission’s chairman and two members in due course.
