Union Cabinet Approves 8th Pay Commission For Central Govt Employees; Check Details

New Delhi: The Union Cabinet has approved the 8th Pay Commission to revise salaries of central government employees and pensioners.

Union Minister Ashwini Vaishnaw announced the decision on Thursday, weeks before the Union Budget 2025 is presented in Parliament by Finance Minister Nirmala Sitharaman.

Though the 8th Pay Commission has been approved, the government has not disclosed when it will be set up.

The 8th Pay Commission, which should pave the way for a salary hike for government employees and retirees, is expected to build on the reforms introduced by the 7th Pay Commission, which was implemented in January 2016.

The recommendations will be concluded by the end of 2025, and a committee has been set up to oversee its implementation.

There have been significant changes in salary structure for government employees under previous pay commissions. The 7th Pay Commission had introduced a simplified pay matrix, replacing the previous pay bands and graded system.

Minimum monthly pay was set at Rs 18,000 and the maximum was Rs 2.5 lakh for Cabinet Secretaries, with a fitment factor of 2.57 times the basic pay. It also increased the gratuity ceiling to Rs 20 lakh and rationalised allowances like HRA.

According to reports, there could be an increase in the fitment factor from 2.57 to 2.86. This could result in a decent rise in basic salaries of government employees.