Cabinet Approves Formation of 8th Pay Commission for Central Government Employees and Pensioners
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the formation of the 8th Central Pay Commission. This decision aims to address salary revisions for central government employees and pensions for retirees.
Key Highlights:
- Background of Pay Commissions:
- Since independence, India has formed seven pay commissions to review and recommend changes in salaries and pensions.
- The 7th Pay Commission, established in 2014, became effective in January 2016. Its recommendations will remain valid until 2026.
- Formation Timeline:
- The 8th Pay Commission will be constituted in 2025. This allows sufficient time to analyze and implement recommendations by January 2026, ensuring a smooth transition after the 7th Pay Commission’s term ends.
- Impact and Scope:
- This decision will benefit approximately 50 lakh central government employees, including defense personnel.
- Over 65 lakh pensioners will also benefit from the revised pensions.
- Process of Implementation:
- The new commission will consult with state governments, central public sector undertakings (PSUs), and other stakeholders.
- A chairman and two members will soon be appointed to lead the commission.
- Demands from Employee Unions:
- Employee unions have been advocating for timely formation, ensuring salary revisions by January 2026.
- They are requesting a fitment factor of 2.86, which could result in a 186% hike in salaries. The 7th Pay Commission used a fitment factor of 2.57.
Why This Matters?
The periodic review by pay commissions ensures government employees and retirees receive fair compensation, aligning with inflation and changing economic conditions. The announcement is seen as a proactive step to address the needs of millions of central government staff and pensioners.
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