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    Union Cabinet Approves the Formation of the 8th Pay Commission

    Union Cabinet Approves the Formation of the 8th Pay Commission


    Finance Outlook India Team | Thursday, 16 January 2025

    In a huge step for government employees, Prime Minister Narendra Modi's cabinet has approved the formation of the 8th central Pay Commission.

    More than a million central government workers and retirees have been waiting for the commission to be established in order to help change their base salary, benefits, pension, and other benefits.

    According to Union Minister Ashwini Vaishnaw, the commission is probably going to be established by 2026.

    Further, he added that the 7th pay commission's recommendations had already been implemented. The identities of the commission's members and other details will eventually be made public by the government.

    In order to guarantee pay parity and benefit both current employees and retired pensioners, the 7th Pay Commission significantly transformed the compensation plans, benefits, and pensions of central government employees.

    Since then, the focus has switched to the 8th Central Pay Commission's anticipated implementation.

    When was the 8th pay commission due?

    Every ten years, Central Pay Commissions are customarily established to evaluate and recommend changes to the pay scales, benefits, and allowances for central government personnel. These commissions analyze economic conditions and inflation.

    Former Prime Minister Manmohan Singh appointed the 7th Pay Commission on February 28, 2014, and it issued its report on November 19, 2015, with recommendations that went into effect on January 1, 2016.

    The 8th Pay Commission may go into effect on January 1, 2026, based on this timeline. Salary revisions, including changes to retirees' Dearness Allowance (DA) and Dearness Relief (DR), are expected, as with prior commissions.



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