8th Central Pay Commission: 'PM Modi Has Approved...' - Ashwini Vaishnaw's Big Announcement

In a landmark announcement by the Modi 3.0 government, Union Minister Ashwini Vaishnaw on Thursday declared the formation of the 8th Pay Commission, which will recommend a fresh structure for salaries, pensions, and allowances of central government employees and pensioners. The decision is expected to impact over 11 million government employees and pensioners across the country.

Vaishnaw stated that the Seventh Pay Commission will be valid till 2026. “The 8th Pay commission will be constituted much before the end of the term of the seventh one that there is enough time for the government to work on the same before the completion of term of the seventh pay commission," Vaishnaw said during a press conference. 

8th Pay commission gets PM's green signal

“PM Narendra Modi has approved the formation of the 8th Pay commission for the central government employees, ” added the minister. 

Vaishnaw highlighted the government’s commitment to ensuring fair compensation and addressing the rising cost of living. “The 8th Pay Commission will aim to provide a balanced framework that takes into account inflation, fiscal responsibility, and the welfare of our workforce,” the minister further added. 

It may be recalled that 7th Pay Commission, which was implemented in 2016, introduced substantial hikes in basic pay and allowances but left some section of employees demanding further reforms. The government claims that the 8^th Pay commission is expected to address certain gaps in the existing structure, particularly in areas such as housing allowances, retirement benefits, and performance-based incentives.

Expected Timeline 

The timeline for the commission's recommendations and implementation has yet to be announced. Experts anticipate that the new pay structure could be rolled out by 2026, coinciding with the 10-year cycle traditionally followed for pay revisions.

Some experts are also of the view that while pay revisions will boost consumer spending, they could put some load on the government’s finances.

Meanwhile, Employee unions have welcomed the announcement but are urging the government to include representatives from all sectors in the commission to ensure an equitable outcome.