Eighth Pay Commission

Context

The government has approved the formation of the Eighth Pay Commission for central government employees.

What is the 8th Pay Commission?

The Pay Commission is responsible for determining the salaries, allowances, and pensions of central government employees and pensioners.
It plays a crucial role in setting the financial terms for the workforce of the government.
The recommendations made by the Pay Commission generally lead to increased salariesand other benefits.
Timeline for the 8th Pay Commission:
- The 7th Pay Commission was implemented in 2017, and its recommendations were effective until 2026.
- The 8th Pay Commission will be formed before 2026, and its recommendations are expected to be implemented from January 1, 2026.
Impact of the 8th Pay Commission:
- The 8th Pay Commission will benefit approximately 4.5 million central government employees and 6.8 million pensioners, including defence personnel.
- In Delhi alone, about 400,000 employees (including those from the Delhi government) will also be affected.
- This move is also timed strategically before the Delhi Assembly elections on February 5, which could have political and economic significance.
- The increased expenditure due to the pay commission is expected to lead to a boost in consumption, stimulating economic growth, just like the 7th Pay Commission did, which resulted in an increase of Rs 1 trillion in expenditure.