Good News To Central Govt Employees; Cabinet Okays 8th Pay Commission Ahead Of Budget 2025; All Details Here

In a major good news, the PM Narendra Modi-backed Cabinet has approved the setup of the 8th Central Pay Commission for all employees of the central government. The 8th Pay Commission is likely to be the extended version of 7th Pay Commission, aimed at improving the living standard of government employees. Accordingly, central government employees salary structures will change ahead.

The 8th Pay Commission is expected to be implemented in 2026.

Union Minister Ashwini Vaishnaw said, "Prime Minister Narendra Modi approves setup of the 8th Central Pay Commission for all employees of the Central Government."

He added, "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 8th Pay Commission is expected to be headed by a chairman and 2 members which will be announced in due course.

The 8th Pay Commission is approved ahead of Union Budget 2025 which will be presented on February 1st by Finance Minister Nirmala Sitharaman. Any development by FM related to 8th Pay Commission will be in focus.

Aditi Nayar, Chief Economist, ICRA Ltd said, "While the award related to the 8th Pay Commission is unlikely to affect fiscal metrics in FY2026, the potential impact of the same should be built into the new medium term fiscal consolidation path as well as the Finance Commission's recommendations."

What Is Pay Commission:

Indian central government set up Pay Commission, an organisation offering recommendations related to salary structure of all public sector employees. The Pay Commission was set up by 1947 which was the year of Independence. Since then, there have been seven pay commissions introduced for the pay structure of all civil and military divisions of the Government of India.

Headquartered in Delhi (India), the commission is given 18 months from date of its constitution to make its recommendations, as per Wikipedia.

The latest is the 7th Pay Commission which was constituted in February 2014, with the principles and structures of emoluments of all central government civilian employees including defence forces in the country. The report was submitted in November 2015, and its recommendations were implemented in 2016 by the NDA government.