8th Pay Commission: The Union Cabinet authorized the establishment of the 8th Pay Commission on Thursday in order to update pensioner benefits and central government employee salaries.
According to Union Minister Ashwini Vaishnaw, Prime Minister Narendra Modi presided over a Cabinet meeting where the decision to establish the 8th Pay Commission was made.
8th Pay Commission Members
The minister announced that two Commission members and the chairman would be named shortly.
The minister also stated that talks with the federal government, state governments, and other interested parties would take place.
What Does Central Pay Commission Do?
The central government appoints a pay commission once every ten years to update the employee pay scale.
Each pay commission reviews and updates salary structures and has specific areas of focus, known as the Terms of Reference (ToR). They also determine pension payments.
The central government has over 49 lakh employees and nearly 65 lakh pensioners. The 7th Pay Commission will conclude its tenure in 2026, having been established in 2016.
Which Central Govt Employee Comes Under Pay Commission?
All personnel in the central government's civil services who receive their wages from the consolidated fund of India—the account where the government receives its revenue—are considered central government employees, according to the 7th Pay Commission.
Who Does Not Come Under the Commission?
Employees of autonomous bodies and public sector undertakings (PSU) as well as gramin dak sevaks are not covered by the 7th Pay Commission.
Employees at PSU are paid differently based on the project they are working on.
Salary Raised in 7th Pay Commission
When it comes to the 7th Pay Commission's compensation revision, employee unions wanted a fitting factor of 3.68, but the government ultimately chose a fitment value of 2.57. The fitment factor is a multiplier used to calculate salaries and pensions.
As a result, the minimum basic salary increased from ₹7,000 per month under the 6th salary Commission to ₹18,000 per month.
Additionally, the minimum pension increased to ₹9,000 from ₹3,500.
The maximum pension was raised to ₹1,25,000, and the maximum wage was raised to ₹2,50,000.
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