Thu Jan 16 16:02:22 UTC 2025: ## Modi Government Approves 8th Pay Commission for Central Employees
**New Delhi, January 16, 2025** – The Union Cabinet, under Prime Minister Narendra Modi, has given its approval for the establishment of the 8th Pay Commission. This commission will review and revise salaries, allowances, and pensions for over 1.2 crore central government employees and pensioners, effective January 1, 2026. The 7th Pay Commission’s mandate expires at the end of 2025.
The 8th Pay Commission’s primary objective is to adjust compensation to reflect current economic realities, including inflation. The commission, which will consist of a chairman and two members (yet to be appointed), is expected to recommend salary increases ranging from 25% to 35%. Pension benefits for retirees could also see an increase of up to 30%. Specific increases in allowances like Dearness Allowance (DA), House Rent Allowance (HRA), and Transport Allowance are also anticipated, potentially reaching 25% based on the recent DA hike to 50%.
The formation of the commission follows years of pressure from trade unions and government employees who sought a pay review citing the rising cost of living since the last revision in 2016. The commission will also address salary disparities and standardize the Fitment Factor for equitable adjustments across employee groups. The resulting increase in disposable income is projected to stimulate economic growth.
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