New Delhi: The Union Cabinet, headed by Prime Minister Narendra Modi, has given the green light to establish the 8th Pay Commission, which will revise the salaries and pensions of more than 1.2 crore central government employees and pensioners. Union Minister Ashwini Vaishnaw announced that the commission's recommendations are expected to be submitted by 2026.

With the 7th Pay Commission's term ending on December 31, 2025, the formation of the 8th Pay Commission ensures sufficient time for the government to review and implement the new recommendations starting in 2026. Vaishnaw confirmed that a chairman and two members will be appointed to the panel, which will consider various economic factors, including inflation, in its review of pay, allowances, and perks.

Extensive consultations with stakeholders, such as state governments and public sector undertakings, will be conducted to develop comprehensive recommendations. The anticipation of this announcement has been high among central government employees and pensioners, with trade unions engaging in discussions with government officials throughout the past year.

This development aligns with the precedent of a 10-year cycle for pay commissions. The 7th Pay Commission, established in 2014 under the UPA government, had its recommendations implemented in 2016 by the BJP-led NDA government. The approval of the 8th Pay Commission marks a crucial step in addressing the financial expectations of government employees and pensioners.

BI Bureau