Centre Announces Constitution Of 8th Pay Commission

Briefing the media after the meeting of the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, the Minister said the implementation of the 8th CPC “is expected to result in a salary hike for central government employees along with their dearness allowance (DA)”. 

“As the 7th CPC’s term concludes in 2026, initiating the process in 2025 ensures sufficient time to receive and review recommendations before its completion,” the Minister said, adding that following the commitment made by the PM to establish pay commissions in a regular rhythm, the 7th CPC started in 2016, and its term will be completed on December 31, 2025. 

Vaishnaw said the government “will soon appoint the chairman and two members” of the panel, which will suggest changes to the central government employees’ pay, allowances and perks, by taking into consideration economic realities like inflation and other external factors.

The Minister also said that there “will be massive consultations with various stakeholders, including state governments, PSUs and employees, who are eagerly awaiting an announcement in this regard”. 

It is to be noted that employee representatives and various trade unions have held numerous meetings with the government in the last one year about the formation of the new CPC. 

Unions have recently met FM Nirmala Sitharaman as part of the customary pre-Budget meeting, where they pressed for the establishment of the 8th CPC for around 50 lakh central government employees and 67 lakh pensioners.

The 7th CPC was formed in February 2014 by the UPA government, but its recommendations were implemented in January 2016 by the Modi government. 

The Pay Commission plays a crucial role in determining salary structures, allowances and other benefits for government employees, and its recommendations significantly impact them across the country.