The Union Cabinet on Thursday has agreed to raise the pay level of Central government employees and pensions for pensioners by setting up the 8th Pay Commission.
"The Prime Minister Narendra Modi has approved the formation of 8th Central Pay Commission benefitting all central government employees and pensioners," Union Minister Ashwini Vaishnaw announced briefing press after the cabinet meeting.
Since 1947, seven pay commissions have been made. The 7th pay commission was notified in 2016. That period will finish in 2026. Hence, by proposing the 8th Pay Commission in 2025, there is enough time so that we shall get recommendations just before the final date of that period of the 7th pay commission, as expressed by Union Minster Vaishnaw.
"This process will involve wide consultations with state governments, central government, PSUs and different stakeholders. A chairman and two members will also soon be appointed for the commission," he said.
The move is expected to benefit around 50 lakh central government employees, including defence personnel, along with more than 65 lakh pensioners, according to officials.
Pay commissions are generally formed once in every 10 years to recommend the fitment factor, and other modalities for the revision of salaries of employees and pensions paid to the retirees.
The 7th Pay Commission was set up by the Manmohan Singh government in February 2014, while its recommendations were implemented by the government from January 2016 onwards by the Modi government.
The announcement on the formation of the 8th pay Commission comes amid persistent demands from the employee unions and staff associations, who have been calling for the formation commission at the earliest so that the salary revision takes from January 2026 onwards.
"Since the last pay hike came into effect from January 1, 2016, the next salary should be revised from January 1, 2026 as the hike in salary of Central government staff takes place after 10 years," All India Railwaymen's Federation Secretary-General Shiv Gopal Mishra said.
Mishra, who is also the secretary (staff side) of the National Council-Joint Consultative Machinery or NC-JCM—an official platform to resolve the disputes between the government and its staff through dialogue.
He said that fitment factor was expected to be at least "2.86" by employees for the implementation of salary reformation. Airf had been demanding fitment factor of 2.86 that would raise 186 per cent of the employee's salaries. The 7th Pay Commission had increased Central government employees' wages and pensions on the fitment factor of 2.57.
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