The Union Cabinet has given its approval for the 8th Pay Commission to revise the salaries and pensions of central government employees and retirees.
Announcing the decision on Thursday, 16 January, Union Minister Ashwini Vaishnaw confirmed the approval but did not specify when the commission would be constituted.
This decision, coming just ahead of the Union Budget 2025, is expected to lead to a salary hike for government employees and pensioners.
The 8th Pay Commission is anticipated to build upon the reforms of the 7th Pay Commission, which came into effect in January 2016.
This key parameter, which determines the multiplication factor for calculating revised salaries and pensions, could result in higher basic salaries for employees if implemented.
The salary structure for government employees has undergone notable transformations under previous pay commissions.
It set the minimum monthly salary at Rs 18,000 and the maximum at Rs 2.5 lakh for Cabinet Secretaries, applying a fitment factor of 2.57 times the basic pay.
The 6th Pay Commission, implemented in 2006, had earlier introduced the pay band and grade pay system.
It set a minimum monthly pay of Rs 7,000 and a maximum of Rs 80,000 for secretary-level officers, with a fitment factor of 1.86 times the basic pay.
The gratuity ceiling was raised to Rs 10 lakh, and allowances were streamlined to improve benefits such as HRA.
These adjustments laid the foundation for subsequent reforms, including those expected from the 8th Pay Commission.
