On a suggestion made by the central government employees’ unions, the government has finally given solace to more than one crore central government employees and pensioners and approved the progress of the 8th Central Pay Commission (CPC). In a written response to the Rajya Sabha, Minister of State for Finance, Pankaj Chaudhary, made it clear that the government has been receiving valuable suggestions made by various stakeholders, and the official notification is expected soon.

Once commissioned formally, the 8th Pay Commission is expected to come up with a set of recommendations on the revision of the salaries of employees in government and a revision of pension payouts to retired and serving employees based on inflation and the increased cost of living. Chaudhary said that the chairperson and the members of the Commission will be appointed on the official notification. The ToR will also schedule how long the commission has to present its report.

The creation of the 8th Pay Commision was first proposed in January 2025, but, since then, little has happened to this effect. Meanwhile, the government has been engaging its major stakeholders, such as state governments, the Ministry of Defence, the Ministry of Home Affairs and the Department of Personnel and Training in consultations. Such consultations are meant to ensure that the recommendations are in accordance with the needs of various sectors of employees and pensioners.

The Pay Commissions are usually appointed after every decade; the 7th Pay Commission was appointed in 2016, and benefits took effect January 1 of the same year. After this cycle, the 8th CPC was expected in the year 2024-2025. But the delays have put the central government employees and retirees on edge, especially with the rise of inflation and living costs. The above-mentioned notification brings much-needed clarity and hope to millions of people who have been waiting for their salary and pension revision and can anticipate an imminent implementation.

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