The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the establishment of the 8th Pay Commission to revise the salaries and allowances of central government employees and pensioners. The decision was announced by Union Minister Ashwini Vaishnaw on Thursday.
The 8th Pay Commission will succeed the 7th Pay Commission, which was set up in 2016 and whose term is set to end in 2026. The chairman and two members of the new commission will be appointed soon, according to the minister.
Significance of Pay Commissions
A pay commission is typically constituted every decade by the central government to review and revise the salary structures of its employees. Its recommendations impact millions of central government employees and pensioners, aligning their remuneration with economic realities and inflation.
The 8th Pay Commission is expected to address critical aspects such as salary structure, pensions, and allowances. Employee unions are likely to push for a higher fitment factor, which determines the final salary calculation, as they did during the 7th Pay Commission.
Background on the 7th Pay Commission
The 7th Pay Commission brought significant changes, including:
- Minimum Basic Pay: Increased from ₹7,000 to ₹18,000 per month.
- Minimum Pension: Raised from ₹3,500 to ₹9,000.
- Maximum Salary and Pension: Fixed at ₹2,50,000 and ₹1,25,000, respectively.
- Fitment Factor: Set at 2.57, against the 3.68 demanded by unions.
The decisions made by the 8th Pay Commission will likely continue to influence central government employment policies and economic planning for the coming decade.
Who Will Be Covered?
The pay commission covers all central government employees working in civil services and those whose salaries are paid from the Consolidated Fund of India. However, employees of public sector undertakings (PSUs) and autonomous bodies, as well as gramin dak sevaks, fall outside its purview. These groups have separate pay structures specific to their organizations.
Impact on Employees and Pensioners
The new pay commission is expected to bring further revisions to salaries and pensions, potentially improving the financial security of government employees and retirees. Stakeholders across the public sector are eagerly awaiting the commission’s formation and subsequent recommendations.
Stay tuned for updates as the chairman and members of the 8th Pay Commission are announced.
