PM Modi: Cabinet's Decision on 8th Pay Commission to Boost Consumption

On Thursday, Prime Minister Narendra Modi highlighted that the government's decision to establish the 8th Pay Commission would lead to improved consumption and better quality of life for government employees and pensioners. He expressed pride in the contributions of government employees, stating, "We are all proud of the efforts of all Government employees, who work to build a Viksit Bharat. The Cabinet's decision on the 8th Pay Commission will enhance the quality of life and stimulate consumption."

Key Details of the 8th Pay Commission Decision

The government has approved the formation of the 8th Pay Commission, which will focus on revising the salaries of approximately 50 lakh central government employees and adjusting the allowances of around 65 lakh pensioners. This decision is expected to positively affect the financial well-being of these individuals and result in increased consumer spending.

This move was confirmed by Union Minister for Information and Broadcasting, Ashwini Vaishnaw, who stated that the Prime Minister had approved the establishment of the new Pay Commission. The appointment of the chairman and two members of the commission is expected to take place soon. The creation of this Pay Commission is aimed at ensuring its recommendations are available well before the conclusion of the 7th Pay Commission’s term, which will end in 2026.

Implications for the Future

The creation of the 8th Pay Commission is an important step in revising salary structures and allowances for government employees, which will also impact state-owned organizations that follow similar guidelines. Since 1947, the government has formed seven Pay Commissions, each of which plays a key role in determining the salary structures, benefits, and allowances for public sector employees. The recommendations of the 7th Pay Commission were implemented starting January 1, 2016.

The new Pay Commission will begin consultations with central and state governments, as well as other stakeholders, to ensure that its recommendations are fair and timely for government employees and pensioners.