In a major decision on Thursday, the government decided to set up the 8th Pay Commission to revise the salaries of central government employees and allowances of pensioners. Information and Broadcasting Minister Ashwini Vaishnaw said that the decision to set up the 8th Pay Commission has been taken by Prime Minister Narendra Modi.

This proactive approach will enable the government to effectively implement the proposed changes before the term of the 7th Pay Commission ends. The Pay Commission plays a key role in determining the salary structure, allowances and other benefits for government employees and its recommendations significantly impact millions of employees and pensioners across the country.

On Twitter, Prime Minister Modi shared the government's support for its employees, writing, "We are proud of the efforts of all government employees, who work to build a developed India. The Cabinet decision on the 8th Pay Commission will improve the quality of life and boost consumption." The announcement was made months after the dearness allowance (DA) of central government employees crossed 50% of their basic pay. Central government employees and pensioners started receiving 53% of their basic pay as DA/relief on July 1, 2024, with the next revision scheduled for January 2025.

The current pay structure was implemented on January 1, 2016, as per the recommendations of the 7th Pay Commission. It will be revised with the setting up of the 8th Pay Commission. As per reports, the fitment factor, the primary multiplier used to calculate pay and pension, may increase from 2.57 to 2.86. However, the exact percentage of pay hikes has not been made public. This may result in a massive increase in the minimum basic income of government employees, which may go up from Rs 18,000 to Rs 51,480.

The announcement of the 8th Pay Commission highlights that the government is committed to meeting the financial and professional needs of its employees. The announcement brings hope for central government employees who depend on pay commissions to ensure fair and timely revision of their salaries. With the 8th Pay Commission starting its work soon, employees can expect a thorough review of their pay scales and benefits in line with the emerging economic conditions and government priorities.