The Union government has approved the establishment of the Eighth Pay Commission as of January 16, 2025. This decision will significantly impact approximately 50 lakh employees and 65 lakh pensioners of the Union government, including serving and retired defence personnel.
Key Highlights:
- Scope and Impact:
- Beneficiaries: Around 115 lakh individuals, including Union government employees and pensioners.
- Delhi alone hosts approximately 4 lakh Union government employees who will benefit from the new recommendations.
- Composition of the Commission:
- The Commission will consist of a Chairperson and two members, to be appointed shortly.
- Traditionally, the Chairperson is a retired Supreme Court judge.
- History of Pay Commissions:
- Since independence, seven Pay Commissions have been formed.
- The Seventh Pay Commission, led by Justice A.K. Mathur, started in 2014 and submitted its report in 2016. Its recommendations were implemented in November 2016, incurring an estimated expenditure of ₹1 lakh crore in the financial year 2016-17.
- The Seventh Pay Commission’s term concludes in 2026, and the newly established Eighth Pay Commission is expected to ensure continuity in reviewing and updating salary and pension structures.