The Union Cabinet gave its stamp of approval on Thursday for setting up 8th Pay Commission to revise salaries of central government employees and allowances of pensioners. The decision was taken at a meeting of the Cabinet chaired by Prime Minister Narendra Modi.
While announcing this, Union minister Ashwini Vaishnaw said that the chairman and two members of the Commission will be appointed soon. According to him, consultations with state governments and other stake holders will also be undertaken.
The news is bound to bring smiles on faces of over 49 lakh central government employees and nearly 65 lakh pensioners as well, as Pay
commissions also decide pension payments.
PM Modi shared his happiness on twitter handle X, saying that the government’s decision to constitute the eighth pay commission will boost
consumption and improve the quality of life.
The central government constitutes a pay commission once every decade to revise the salary structure of its employees. In addition to revising the salary structure, each pay commission has a term of reference (ToR), which broadly defines its focus.
Those covered under pay commission are central government employees, which means all persons in the civil services of the central government and those who are paid salaries out of the consolidated fund of India, which is the account in which government collects its revenues.
Employees of public sector undertakings (PSU) and autonomous bodies are not covered as PSU employees have separate pay scales depending on the undertaking they work for.
