8th Pay Commission: Key Highlights
The Union Cabinet approved the formation of the 8th Pay Commission on Thursday. This decision will impact central government employees and pensioners.
The meeting, chaired by Prime Minister Narendra Modi, finalized this step. Union Minister Ashwini Vaishnaw confirmed the approval and stated that a chairman and two members for the commission will be appointed soon. The government will also hold consultations with central and state authorities and other stakeholders.
Purpose of Pay Commissions
Pay commissions revise salaries and pensions for central government employees. Typically formed every ten years, these commissions define their focus through specific terms of reference (ToR). They also ensure that pension structures align with the evolving needs of retirees.
7th Pay Commission Recap
The 7th Pay Commission, established in 2016, introduced significant changes:
- Minimum Salary: Increased from ₹7,000 to ₹18,000.
- Minimum Pension: Raised from ₹3,500 to ₹9,000.
- Maximum Salary: Set at ₹2,50,000.
- Maximum Pension: Capped at ₹1,25,000.
The government approved a fitment factor of 2.57, affecting salary calculations. However, employee unions had demanded a higher factor of 3.68.
Who Benefits from the Pay Commission?
Central government employees, funded by the Consolidated Fund of India, are covered. Public sector undertaking (PSU) employees, autonomous body staff, and gramin dak sevaks fall outside its scope. PSU employees follow separate pay scales based on their organization.
Why This Matters
The 8th Pay Commission will revise salaries and pensions for over 49 lakh central government employees and 65 lakh pensioners. These updates aim to improve financial stability for employees and retirees.
Stay tuned for further updates on the commission’s progress and implementation!
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