Fri Jan 17 19:57:53 UTC 2025: ## Modi Government Announces 8th Pay Commission, Boosting Salaries and Pensions for 1.2 Crore Employees

**New Delhi, [Date]** – The Union Cabinet approved the establishment of the 8th Pay Commission, bringing welcome news to over 1.2 crore central government employees and pensioners. This significant move, announced ahead of the Union Budget 2025, is expected to substantially revise salaries and pensions.

Prime Minister Modi highlighted the transformative impact of the decision, emphasizing its positive effect on the quality of life for government employees and retirees, and its potential to stimulate economic consumption. Union Minister Ashwini Vaishnaw assured seamless implementation of the commission’s recommendations before the 7th Pay Commission’s term ends in 2026. Extensive consultations with various stakeholders, including state governments, are planned to ensure a comprehensive and inclusive approach.

The 8th Pay Commission will revise salaries for nearly 50 lakh employees and pensions for approximately 65 lakh retirees. The chairman and members of the commission will be appointed shortly, initiating consultations with relevant parties.

While precise figures are pending the commission’s recommendations, experts predict a significant increase in pensions, potentially ranging from a current average of ₹9,000 to between ₹17,280 and ₹25,200, depending on the final “fitment factor.” This factor, a key multiplier in salary and pension calculations, could lead to an overall increase of approximately 186% in some cases. Allowances and other benefits will also receive a substantial revision. Based on historical trends, an average 20-30% pension increase is anticipated, although the final percentage will depend on economic conditions and budgetary limitations. Future improvements may encompass higher allowances for senior pensioners and increased dearness relief to mitigate inflation. The government is confident the commission’s recommendations will be finalized well before 2026.

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