New Delhi: In a significant move for central government employees and pensioners, the Union Cabinet has approved the formation of the 8th Pay Commission. The announcement was made by Union Information and Broadcasting Minister Ashwini Vaishnaw in New Delhi on Thursday, January 16.
The decision comes as the term of the current 7th Pay Commission, which has been in effect since 2016, is set to end in 2026.
The formation of the 8th Pay Commission will provide ample time to assess and implement the panel’s recommendations, with the government aiming for the final report by the end of 2025. The minister also indicated that the appointment of the commission’s chairman and two members would take place soon.
The establishment of the 8th Pay Commission is expected to bring about a salary revision for government employees and pensioners. Reports suggest that one of the key considerations for the commission is an increase in the fitment factor—from 2.57 to 2.86—which would lead to a hike in basic salaries and pensions for central government workers.
Prime Minister Narendra Modi expressed his support for the Cabinet’s decision, stating that the formation of the 8th Pay Commission will not only improve the quality of life for government employees but also boost consumption across the economy. “We are all proud of the efforts of all Government employees, who work to build a Viksit Bharat. This decision will give a boost to consumption and improve the quality of life,” the Prime Minister wrote in a post on X (formerly Twitter).
The announcement comes ahead of the Union Budget 2025, and is expected to influence upcoming fiscal policy discussions.
In a related development, the Cabinet also approved the establishment of a Third Launch Pad at the Satish Dhawan Space Centre in Sriharikota, Andhra Pradesh. This infrastructure project, costing Rs 3,985 crore, is aimed at enhancing India’s space launch capacity, particularly for the Gaganyaan mission.
