The Union Cabinet has approved the establishment of the 8th Pay Commission. This commission will review and revise the salaries of central government employees and pensioners. The approval was announced after a Cabinet meeting chaired by Prime Minister Narendra Modi. Key Details Of 8th Pay Commission From Central Government Union Minister Ashwini Vaishnaw confirmed that the chairman and two members of the commission will be appointed soon. Consultations with central and state governments, along with other relevant stakeholders, will take place to ensure a comprehensive approach. The Pay Commission, set […]
Cabinet Approves 8th Pay Commission For Central Government Employees
The Union Cabinet has approved the establishment of the 8th Pay Commission. This commission will review and revise the salaries of central government employees and pensioners. The approval was announced after a Cabinet meeting chaired by Prime Minister Narendra Modi.
Union Minister Ashwini Vaishnaw confirmed that the chairman and two members of the commission will be appointed soon. Consultations with central and state governments, along with other relevant stakeholders, will take place to ensure a comprehensive approach.
The Pay Commission, set up once every decade, is responsible for revising the salary structure and pension payments for central government employees. It also defines the terms of reference (ToR) which outlines the focus areas for the commission.
Currently, over 49 lakh central government employees and 65 lakh pensioners are covered under such revisions. The 7th Pay Commission, which was implemented in 2016, is expected to end in 2026, and the 8th Pay Commission will take its place after that.
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The 7th Pay Commission, as with previous ones, applies to central government employees. These include individuals in the civil services of the central government and those paid from the consolidated fund of India. This fund is the government’s main revenue account.
However, employees of public sector undertakings (PSUs) and autonomous bodies are excluded from the Pay Commission. For instance, employees working at Coal India or similar PSUs are not included. PSUs have their own separate pay scales.
The 7th Pay Commission saw several key revisions. Unions had requested a fitment factor of 3.68, but the government opted for a lower 2.57. The fitment factor is a multiplier that determines salary and pension adjustments.
As a result of the revised fitment factor, the minimum basic pay was raised to ₹18,000 per month, up from ₹7,000 in the 6th Pay Commission. The minimum pension also saw a significant rise, going from ₹3,500 to ₹9,000.
For the highest-paid employees, the maximum salary became ₹2,50,000, while the maximum pension was set at ₹1,25,000.
With the formation of the 8th Pay Commission, central government employees and pensioners can expect another major overhaul of their pay and pension structure. The Cabinet’s approval has set the stage for the next step in revising the compensation system for a large segment of the Indian workforce.
The government’s focus will likely be on ensuring that the revisions reflect both the current economic environment and the needs of public sector workers. For now, all eyes are on the upcoming commission’s formation and its eventual recommendations.
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