What is 8th pay commission and who all are benefited? Details here

The Union Cabinet, led by Prime Minister Narendra Modi, has approved the constitution of the 8th Pay Commission, sources reported. Information and Broadcasting Minister Ashwini Vaishnaw confirmed that a Chairman and two members will soon be appointed.

The Pay Commission, which determines the salary and compensation for central government employees, is set to review pay structures, allowances, pensions, and other benefits. This development comes as the recommendations of the 7th Pay Commission, implemented in January 2016, are valid until 2026.

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Who benefits from the 8th Pay Commission?

Over one crore central government employees and pensioners are eagerly awaiting the 8th Pay Commission. Its recommendations, expected to take effect from January 1, 2026, aim to improve basic pay, allowances, and pensions.

Key highlights of the 8th Pay Commission:

  • Higher Salary Expectations: Reports suggest a potential increase in the fitment factor from 2.57 to 2.86, which could raise the minimum basic salary from ₹18,000 to ₹51,480.
  • Inflation and Economic Considerations: The commission will focus on adjusting pay scales and benefits to address inflation and ensure equitable compensation.
  • Impact on Employees and Pensioners: Recommendations may include changes to Dearness Allowance (DA) and Dearness Relief (DR), benefiting both active and retired personnel.

7th Pay Commission Overview:

The 7th Pay Commission, implemented in 2016, introduced a simplified pay matrix, increased the minimum salary to ₹18,000, and capped the maximum monthly pay at ₹2.5 lakh. It also raised the fitment factor to 2.57, boosting the financial well-being of employees.

As the process for the 8th Pay Commission begins, employees and retirees are optimistic about significant reforms that will improve their quality of life and contribute to economic growth.