The Union Cabinet, under the leadership of Prime Minister Narendra Modi, has approved the formation of the 8th Pay Commission to revise the salary structure for central government employees and pensioners. This significant decision, aimed at enhancing the quality of life for over 1.15 crore employees and pensioners, comes almost a decade after the implementation of the 7th Pay Commission in 2016.
The recommendations of the 8th Pay Commission are expected to take effect from January 1, 2026. Experts predict a notable increase in the minimum basic pay, with the fitment factor anticipated to be between 2.5 and 2.8 times the current pay. This could result in salaries rising to a range of ₹40,000 to ₹45,000. Additionally, allowances, pensions, and other benefits will also undergo a thorough review to ensure fair and adequate compensation.
The commission, which will consist of a chairman and two members, will engage in consultations with central and state governments, along with other stakeholders, to formulate comprehensive recommendations. As the nation awaits further updates, this move is expected to not only benefit employees but also boost consumption and overall economic growth.