To benefit 1.15 crore central employees and pensioners, PM Modi approves the eighth pay commission.

 

Prime Minister Narendra Modi on Thursday approved setting up the 8th Pay Commission to revise salaries of nearly 50 lakh central government employees and allowances of 65 lakh pensioners. The chairman and two members of the Commission will be appointed soon, I&B Minister Ashwini Vaishnaw told reporters here. “Prime Minister has approved 8th Central Pay Commission for central government employees,” the minister said.

The term of the 7th Pay Commission will end in 2026.Since 1947, seven Pay Commissions have been constituted, with the last one implemented in 2016. As the 7th Pay Commission’s term concludes in 2026, initiating the process in 2025 ensures sufficient time to receive and review recommendations before its completion, the minister added.

According to him, the establishment of the new Pay Commission in 2025 will guarantee that its recommendations are implemented well in advance of the seventh pay panel's term ending.Before making recommendations to the government, pay commissions consult extensively with the federal government, state governments, and other interested parties. In determining pay scales, benefits, and allowances for government workers, the pay commission plays a crucial role. Most of the state-owned organisations follow the commission’s recommendations. 

The 7th Pay Commission was constituted in 2014 and its recommendations were implemented on January 1, 2016.Sources said around 50 lakh central government employees, including defence personnel, will benefit from the decision. Also, about 65 lakh pensioners, including defence persons, will also see an uptick in their pensions, they added.
For the fiscal year 2016–17, the 7th pay commission's expenditures increased by Rs 1 lakh crore.
In addition to improving the standard of living for government workers, the pay panel's recommendations significantly increase economic growth and consumption.
The central government typically appoints a pay commission to review employee compensation every ten years.

In order to compensate central government employees and pensioners for inflation, the pay commission also suggests a formula for revising dearness allowance and dearness relief.


A number of state governments also update their employees' salaries in accordance with the central pay commission.