Union Cabinet Greenlights 8th Pay Commission for Central Government Employees and Pensioners
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Synopsis
The Union Cabinet has approved the establishment of the 8th Pay Commission to address salary increases for Central government employees and pensioners, ensuring timely recommendations before the 7th Pay Commission concludes.
Key Takeaways
- Formation of the 8th Pay Commission approved.
- Expected to impact 50 lakh employees and 65 lakh pensioners.
- Initiative follows demands from employee unions.
- Next salary revision anticipated for January 2026.
- Fitment factor recommendation of at least 2.86 sought.
New Delhi, Jan 16 (NationPress) The Union Cabinet has officially sanctioned the establishment of the 8th Pay Commission, which will address the critical issue of enhancing salaries for Central government employees and pensioners.
Prime Minister Narendra Modi has endorsed this initiative aimed at benefiting all central government employees and pensioners, as announced by Union Minister Ashwini Vaishnaw during a press briefing following the Cabinet meeting.
Since 1947, a total of seven pay commissions have been established. The 7th Pay Commission was implemented in 2016 and is set to conclude its tenure in 2026. By initiating the 8th Pay Commission in 2025, we ensure ample time to gather recommendations prior to the expiration of the 7th Pay Commission’s term, stated Union Minister Vaishnaw.
This process will entail extensive consultations with state governments, the central government, public sector undertakings (PSUs), and various stakeholders. A chairman and two members will soon be designated for the commission, he added.
Officials estimate that this initiative will positively impact approximately 5 million central government employees, including defence personnel, as well as over 6.5 million pensioners.
Typically, pay commissions are established every decade to propose adjustments to the fitment factor and other parameters for revising employee salaries and pensions for retirees.
The 7th Pay Commission was initiated by the Manmohan Singh administration in February 2014, with its recommendations being enacted by the current government beginning January 2016.
The announcement regarding the formation of the 8th Pay Commission follows ongoing demands from employee unions and staff associations, who have urged for the commission's prompt establishment to facilitate salary revisions starting from January 2026.
Shiv Gopal Mishra, Secretary-General of the All India Railwaymen's Federation, noted that since the last salary increment took effect on January 1, 2016, the next adjustment should be scheduled for January 1, 2026, as pay increases for Central government personnel occur every decade.
Mishra, who also serves as the Secretary (staff side) of the National Council-Joint Consultative Machinery (NC-JCM)—a formal platform for resolving disputes between the government and its staff through dialogue—expressed that employees are anticipating a fitment factor recommendation of at least 2.86 for the salary adjustment. This proposed fitment factor of 2.86, as advocated by AIRF, would translate to a 186% salary hike. The 7th Pay Commission had previously adjusted wages and pensions based on a fitment factor of 2.57.
