Union Minister Ashwini Vaishnaw announced on Thursday, January 16, that the Union Cabinet has approved the establishment of the 8th Pay Commission, which will focus on revising the salaries of Central government employees.

This decision is expected to lead to an increase in the salaries of government employees. Besides this, the 8th Pay Commission will also review and revise the allowances of Central government pensioners once it is set up.

The Union Cabinet has approved the 8th Pay Commission for revising the salaries of Central government employees, with the announcement coming just days before the Budget 2025. While Union Minister Ashwini Vaishnaw confirmed the approval, the specific timeline for setting up the commission has not yet been disclosed.

Vaishnaw also mentioned that a chairman and two members will soon be appointed to lead the process of establishing the 8th Pay Commission.

The announcement of the approval for the 8th Pay Commission was made just ahead of the Budget 2025 announcement. Although Ashwini Vaishnaw confirmed that the Cabinet has approved the 8th Pay Commission for Central government employees, the exact date for its implementation has not been disclosed yet.

Vaishnaw also stated that a chairman and two members will be appointed soon to oversee the establishment of the 8th Pay Commission.

The Cabinet, led by Prime Minister Narendra Modi, has decided to establish the 8th Pay Commission, according to Information and Broadcasting Minister Ashwini Vaishnaw.

The 7th Pay Commission, which was set up in 2016, will complete its term in 2026. In anticipation of its conclusion, the government has decided to introduce the 8th Pay Commission to review and revise the salaries of Central government employees.

How much increment can be expected?

According to some previous reports, central government employees may receive a 186% rise in their minimum salaries. Under the 7th Pay Commission, the current minimum basic salary is Rs 18,000 per month, an increase from Rs 7,000 under the 6th Pay Commission.

Shiv Gopal Mishra, the Secretary of the National Council of Joint Consultative Machinery (JCM), has stated that he expects a fitment factor of at least 2.86, which is slightly higher than the 2.57 fitment factor in the 7th Pay Commission.

If the government approves the 2.86 fitment factor, the minimum salary for central government employees will increase by 186%, reaching Rs 51,480 from the current Rs 18,000.

Any additional increase in the fitment factor will lead to higher salaries.This hike in the fitment factor will also result in a significant increase in pensions. Pensions are expected to rise by 186%, going up to Rs 25,740 from Rs 9,000, if the 2.86 fitment factor is approved.