In a major development, Prime Minister Narendra Modi led Union Cabinet approves the 8th central pay commission for central government employees and pensioners ahead of Budget 2025. Union Minister Ashwini Vaishnaw today, January 16, announced the formation of the new pay commission. Central government employees can now expect a salary hike after the implementation of the new Pay Commission.

This highly anticipated development is likely to benefit over 1 crore central government employees and pensioners. The Union Cabinet has approved the new Pay Commission, a significant development for Central government employees, just days before the Budget 2025. The Union Cabinet has approved the new Pay Commission, a significant development for Central government employees, just days before the Budget 2025. However, the implementation date remains uncertain.

The 7th Pay Commission was set up by former Prime Minister Manmohan Singh on February 28, 2014, and submitted its report on November 19, 2015. The recommendations were implemented effective January 1, 2016, aiming to enhance the salary structure of central government employees.

“Ahead of that, the government has approved the constitution of the 8th Pay Commission so that recommendations are made in a timely manner and can be implemented from 2026 onwards,” said Vaishnav.

8th Pay Commission: More Details

Earlier, media reports said that the government might completely forgo the 8th Pay Commission, potentially abandoning the pay panel system altogether, impacting over 1 crore central government employees and pensioners.

“The government is thinking of a different way to revise salaries and pensions for central employees and pensioners instead of setting up a new pay commission like before,” media reports had quoted the source, who has been privy to all the recent meetings between the government and employee representatives.

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