Sat Jan 18 04:30:00 UTC 2025: ## Government Announces Eighth Pay Commission Ahead of Delhi Elections

**New Delhi, January 16, 2025** – Days before the Delhi Assembly elections, the Union government announced the establishment of the Eighth Pay Commission, a move expected to benefit around 50 lakh government employees and 65 lakh pensioners. The decision, announced by Union Information and Broadcasting Minister Ashwini Vaishnaw, follows a long-standing demand from central trade unions and employee organizations.

The commission, typically headed by a retired Supreme Court judge, will determine salary revisions for central government employees, impacting the wages of those in public sector undertakings and potentially influencing similar revisions in state governments. The government anticipates a positive impact on consumption and economic growth.

While the Seventh Pay Commission’s term extends until 2026, the government opted to establish the Eighth Pay Commission proactively to allow ample time for consultations and the review of recommendations before the Seventh Pay Commission’s term concludes. The new commission will engage in extensive consultations with various stakeholders, including Union and State governments, before submitting its report.

Trade unions have expressed a positive reaction, though they await details regarding the terms of reference and commission composition. Concerns were raised regarding the need to update the existing minimum wage formula, taking into account increased living costs, including the rising costs of internet access, healthcare, and education.

Experts, however, caution that the typical significant increase in revenue expenditure following such revisions could impact the government’s fiscal space for capital expenditures. The implementation of the Seventh Pay Commission in 2016 resulted in a substantial increase in revenue expenditure (approximately ₹1 lakh crore in 2016-17). Similar implications are anticipated for the 2026-27 fiscal year.

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