8th Pay Commission approved: What does it mean? Who will benefit after Cabinet nod? Key facts

8th Pay Commission: PM Modi-led Union Cabinet approved setting up of the 8th Pay Commission on Thursday.

8th Pay Commission: In a major decision, the Union Cabinet on Thursday decided to set up the 8th Pay Commission to revise salaries of central government employees and allowances of pensioners.

8th Pay Commission: Over one crore Central employees and pensioners are set to benefit from the setting of the 8th Pay Commission. (REUTERS)

The decision to set up the 8th Pay Commission was taken at a meeting of the Cabinet chaired by Prime Minister Narendra Modi, Union minister Ashwini Vaishnaw said. The 7th Pay Commission was set up in 2016, and its term will end in 2026.

Over 49 lakh central government employees and nearly 65 lakh pensioners will benefit from the decision.

Since 1947, there have been seven Central Pay Commissions. A new pay commission is set up every 10 years to introduce revisions in the salaries of Central employees and pensioners.

“Setting up the 8th Pay Commission well before the term of the 7th Pay Commission ends in 2026 will give us sufficient time to receive recommendations,” Ashwini Vaishnaw said.

The minister also said the chairman and two members of the commission will be appointed soon and that there will be consultations with central and state governments along with other stakeholders.

Key takeaways from announcement of 8th Pay Commission:

• Around 50 lakh central government employees, which includes defence personnel, are set to see a hike in their salaries owing to the setting up of the 8th Pay Commission, PTI reported, citing unnamed sources.
• As many as 65 lakh pensioners, including defence persons, will also benefit from the decision, the report added.
• The decision comes weeks ahead of the presentation of the Union Budget 2025 on February 1 and also the much-awaited Delhi assembly election which will take place on February 5.
• Around four lakh employees in Delhi, including the state government employees and defence personnel, are set to benefit from the 8th Pay Commission.
• The Union Cabinet's decision to set up the 8th Pay Commission will “improve quality of life and give a boost to consumption,” said PM Narendra Modi in a post on X.