The Cabinet on Tuesday approved the Terms of Reference (ToR) of the 8th Pay Commission, which will comprise one chairperson, one member (part-time) and one member-secretary. It will make its recommendations within 18 months of its constitution. The panel, to be chaired by former Supreme Court judge Ranjana Prakash Desai, will submit an interim report to the government.
8th Pay Commission: When will new salaries come into effect?
The new salaries or pensions are likely to be implemented from January 1, 2026. "The specific date will be decided once the interim report comes in...But, mostly it should be January 1, 2026," I&B Minister Ashwini Vaishnaw when asked about the date of implementation of the pay panel award.
8th Pay Commission: How many people will benefit
The recommendations of the pay panel will benefit about 50 lakh central government employees, including defence personnel. Also, about 65 lakh pensioners, including defence persons, will also see an uptick in their pensions.
Pay Commissions in India
Since 1947, seven Pay Commissions have been constituted, with the last one implemented in 2016.
The 7th Pay Commission was constituted in 2014 and its recommendations were implemented on January 1, 2016. The term of the 7th Pay Commission will end in 2026. Usually, every 10 years, the central government constitutes a pay commission to revise the remuneration of its employees.
The 7th Pay Commission saw an expenditure increase of Rs 1 lakh crore for fiscal 2016-17.
Implementation of the pay panel's recommendations provides a significant boost to consumption and economic growth, along with improved quality of life for government employees.
The pay commission also recommends the formula for the revision of dearness allowance and dearness relief for central government employees and pensioners with a view to compensating them for inflation.
