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Union Cabinet Approves 8th Pay Commission for Central Govt Employees

The decision to set up the 8th Pay Commission was taken at a meeting of the Cabinet chaired by Prime Minister Narendra Modi, according to Union Minister Ashwini Vaishnaw.

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Union Cabinet Approves 8th Pay Commission for Central Govt Employees

Union Cabinet Approves 8th Pay Commission for Central Govt Employees

Central government employees must be happy as big news has knocked on their doors in the new year. The Union Cabinet on Thursday (16th January) approved to set up 8th Pay Commission in order to revise the salaries of central government employees and allowances of pensioners.

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The decision to set up the 8th Pay Commission was taken at a meeting of the Cabinet chaired by Prime Minister Narendra Modi, according to Union Minister Ashwini Vaishnaw. He also added that the chairman and two members of the Commission will be appointed soon.

A pay commission is constituted by the central government once every decade with the purpose of revising the salary structure of its employees. In addition, a pay commission has a term of reference (ToR), which describes its focus. Pay commissions also decide payments for pension holders. The 7th Pay Commission was set up in 2016, and its term will end on 31st December  2025.

The pay structure of the government employees will be known after the pay commission decides on it.

Comparing the previous pay commissions, we know that the minimum basic pay rose to Rs 18000 per month from Rs 7000 in the 6th pay commission. Similarly, the minimum pension also rose to Rs 9000 in the 7th pay commission from Rs 3500 in the 6th pay commission.

The upper limit of salary became Rs 250000 and the maximum pension became Rs 125000 in 7th pay commission. 

The 7th Pay Commission rules suggested that central government employees are all those in the civil services of the central government as well as who are paid salaries out of the consolidated fund of India. This fund is the account in which the government collects its revenues.

Employees of public sector undertakings (PSU), autonomous bodies, and gramin dak sevaks were not covered in the 7th Pay Commission. Employees of PSUs have separate pay scales depending on the undertaking they are working for.

Union Cabinet Central government Central Government Employees