Cabinet approves 8th Pay Commission constitution

Prime Minister Narendra Modi-led Union Cabinet on Thursday approved the constitution of the 8th Pay Commission

This was announced by the Minister for Railways, Information & Broadcasting, Electronics & Information Technology, Ashwini Vaishnaw. He said that the Chairman and two members for the same will be appointed soon.

The minister said that the 7th Pay Commission, implemented from 2016 is valid till 2026. 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, Vaishnaw said.

The announcement of 8th Pay Commission being approved by the Union Cabinet has come days ahead of the Budget 2025 announcements.

There were talks that the government will do away with the formation of Pay Commissions. As the announcement was getting delayed, there were lot of confusions. However now it is most likely that the 8th Pay Commission will come into force on January 1, 2026.

A pay commission is constituted by the central government once every decade to revise the salary structure of its employees. In addition to revising the salary structure, each pay commission has a term of reference (ToR), which broadly defines its focus. Pay commissions also decide pension payments.

The 7th Pay Commission was set up in 2016, and its term will end in 2026.

More details to follow

PM @narendramodi Ji has approved the 8th Central Pay Commission for all Central Government employees. pic.twitter.com/4jl9Q5gFka

— Ashwini Vaishnaw (@AshwiniVaishnaw) January 16, 2025