The 8th pay commission benefits for state government& Central Government
Since 1947, seven pay commissions have been constituted in India, the last of which was constituted in 2014 and came into effect on 1 January 2016.
As a result, the Union Cabinet on Thursday approved the implementation of the 8th Pay Commission to revise the salaries of about 50 lakh central government employees and allowances of 65 lakh pensioners. Government employees can expect to wait around two years after the commission is formed for the revised pay structure to take effect .The 8th Pay Commission will not only increase the salaries of central government employees in the country but will also bring revised Dearness Allowance (DA).
Now, Prime Minister Narendra Modi has decided to constitute the 8th Pay Commission and has allowed it to be implemented by 2026.
Know how the latest Union Budget 2025 update will affect your tax liability.
8th Pay Commission: Pensions are expected to increase by up to 30%
The Prime Minister has approved the constitution of the 8th Central Pay Commission, which will recommend guidelines for revision of basic pay and allowances. The commission has promised to provide a number of benefits, including enhanced retirement benefits, not only for government employees but also for military personnel and pensioners.
With its implementation, the 8th Pay Commission aims to eliminate pay disparities among different employee groups and reduce the impact of inflation. To know more about the objectives and expectations of the 8th CPC, read this blog.
Plan early and start saving for the coming year
Use the tax calculator and get your tax estimate as per the new budget in minutes
Calculate now
What is the 8th Pay Commission?
First reported in 2020, the 8th Pay Commission is a proposed initiative of India that aims to update the salaries, allowances and pension benefits mainly for central government employees. The Prime Minister announced the constitution of the 8th Pay Commission on 16 January 2025. The commission’s objective is to address the rising cost of living and ensure that the CGE pay reflects current prices.
The approval of the 8th Pay Commission is likely to benefit about 50 lakh central government employees, including defence personnel and 65 lakh pensioners. The commission’s recommendations are likely to cover various areas such as pay revision, allowances and benefits and pension revision.
Once implemented, recommendations will benefit over 1 crore serving and retired Central Government employees and officers.