Cabinet Nod for 8th Pay Commission Implementation
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the constitution of the 8th Central Pay Commission, which will evaluate and recommend revised salary structures and allowances for central government employees and pensioners. This early initiative ensures readiness for implementing the recommendations by January 1, 2026. The commission’s scope encompasses over one crore employees and pensioners, aiming to address compensation, pensions, and welfare enhancements.
Approval and Formation
Timeline and Implementation
Scope and Expectation
Historical Context
Government Proactive Approach
Next Steps
1. Salary Enhancements
2. Fitment Factor Adjustment
3. Allowance Revisions
4. Pension Reforms
5. Performance-Based Incentives
6. Health and Welfare Benefits
Revised Pay Structure
Pay Matrix Introduction
Allowances Rationalization
Pension Reforms
Performance-Linked Pay
Defense Forces Considerations
Summary/Static | Details | |
Why in the news? | Cabinet Nod for 8th Pay Commission Implementation | |
Aspect | 7th Commission | 8th Commission (Expected) |
Constitution Date | February 28, 2014 | January 16, 2025 (Cabinet Approval) |
Implementation Date | January 1, 2016 | January 1, 2026 |
Minimum Basic Pay | ₹18,000 | ₹51,480 (Expected 186% increase) |
Fitment Factor | 2.57 | 2.86 (Expected increase) |
Pay Structure | Simplified Pay Matrix with 19 levels | Likely continuation with adjustments |
Allowances | Rationalized DA, HRA, and TA | Comprehensive reviews aligned with inflation |
Pension Minimum | ₹9,000; linked to pay matrix | Higher pension amounts, timely disbursement |
Special Features | Performance-related pay, defense-specific recommendations | Possible performance-linked pay structure |
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