“The Prime Minister approved the formation of the 8th Central Pay Commission in January. The commission will assess economic conditions including inflation economic growth and other key factors”.
The 8th Pay Commission is set to introduce major revisions to the salary structure of government employees and pensioners. The government has sought inputs on the Terms of Reference (ToR) from key stakeholders including the Finance Ministry Ministry of Defence Ministry of Home Affairs Department of Personnel & Training, and state governments.
The 8th Pay Commissions recommendations are expected to benefit approximately 36.57 lakh central government civilian employees as of March 1, 2025 and 33.91 lakh pensioners and family pensioners as of December 31 2024. Additionally defence personnel and pensioners will also gain from these revisions. The full impact of the 8th CPC can only be determined once its recommendations are made and accepted by the government.
In January the Prime Minister approved the formation of the 8th Central Pay Commission.
The 8th Central Pay Commission will be responsible for reviewing the salary structures allowances and pensions of central government employees and pensioners. It will assess current economic conditions including inflation economic growth and other key factors.
Typically constituted every 10 years, the Pay Commissions recommendations are expected to be implemented by 2026. These recommendations will cover various aspects including salary and pension revisions, allowances, and other benefits.
The recommendations of the 8th Pay Commission are expected to benefit multiple groups:
65 lakh pensioners: Government pensioners will see improvements in their pension structure.
4 lakh employees in Delhi: Salaries of government employees in Delhi will be revised.
50 lakh central government employees: This includes personnel from various ministries, departments, and central public sector undertakings.
Defence personnel: Members of the Army, Navy, and Air Force will receive enhanced salaries and benefits.
The 7th Pay Commission, implemented in 2016, led to an increase of ₹1 lakh crore in salary and pension payouts in its first year.