8th Pay Commission: Prime Minister Narendra Modi gives nod to new pay commission; 7th Pay Commission tenure extended till 2026

8th Pay Commission Latest News: Prime Minister Narendra Modi today (Thursday, January 16, 2024) gave the go-ahead to the 8th Pay Commission, Zee Business reported.

The implementation of the pay commission is not the cabinet's decision, but it's the PM's decision, Zee Business says.

Union Minister Ashwini Vaishnaw gave information about the formation of the 8th Pay Commission. 

#WATCH | Delhi: Union Minister Ashwini Vaishnaw says, "Prime Minister has approved the 8th Central Pay Commission for all employees of Central Government..." pic.twitter.com/lrVUD25hFu

— ANI (@ANI) January 16, 2025

The development will benefit central government employees whose salaries are likely to increase substantially. 

The tenure of the 7th Pay Commission will remain till December 31, 2026.

The 7th Pay Commission was implemented in 2016. It will run a full 10-year period at 2026 end.

PM Modi clears doubt on 8th Pay Commission

Earlier, it was reported that the 8th Pay Commission wouldn't come and the government may find a mechanism to supplant pay commissions. 

There were suggestions that performance-based salary revisions or some other mechanisms can be considered as alternatives to pay commissions.

Minister of State for Finance Pankaj Chaudhary had also stated that the government was not planning to establish an 8th Pay Commission.

But PM Modi sprung a surprise on Thursday, clearing the way to implement the 8th Pay Commission for many central government employees. 

What will be salary increase for central government employees? 

Once the 8th Pay Commission comes into existence, the salary of central government employees is expected to see a sharp jump.

The fitment factor, which is considered to calculate the central government employees' basic salary, is estimated to increase by 3.68 times.

After that, the basic salary of central government employees is estimated to increase by 45 per cent.