Thu Jan 16 16:02:22 UTC 2025: ## Modi Government Announces 8th Pay Commission for Central Employees

**New Delhi:** The Modi government has announced the formation of the 8th Pay Commission for central government employees, bringing welcome news ahead of the 2025 budget. The decision comes as the dearness allowance for central employees and pensioners has risen to 53%, a long-standing concern addressed by this move. Union Minister Ashwini Vaishnaw revealed the cabinet’s decision following a meeting chaired by Prime Minister Narendra Modi. The commission is expected to submit its report by 2026.

The government will consult with state governments and PSUs before finalizing the commission’s composition, including the appointment of its chairperson and two members. The 7th Pay Commission, implemented in 2016, is nearing the end of its 10-year tenure, prompting this preemptive measure.

Reports suggest a potential minimum basic salary increase to ₹51,480, significantly higher than the current ₹18,000, based on a projected fitment factor of at least 2.86. This would also lead to a substantial increase in minimum pensions for retirees. The fitment factor plays a crucial role in determining the total salary, which includes basic salary, allowances, and the fitment factor itself. The implementation of the 7th Pay Commission in 2016, with a 2.57 fitment factor, resulted in a significant salary hike for government employees. The 8th Pay Commission is anticipated to bring about similarly impactful changes.

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