8th Pay Commission Approved for Central Government Employees Ahead of Budget 2025

New Delhi, 16 January 2025: In a significant move ahead of Budget 2025, the Union Cabinet has approved the formation of the 8th Pay Commission to revise salaries, pensions, and allowances for central government employees and pensioners. The decision, seen as a pre-election measure, aims to address long-standing demands for better pay structures and inflation-adjusted benefits.

The 8th Pay Commission is expected to propose recommendations effective from 2026. Key areas of focus include restructuring of pay bands, improved allowances, and enhanced pension benefits. This decision is likely to benefit over 1 crore central government employees and pensioners.

Finance Minister Nirmala Sitharaman is expected to elaborate on this development during her Budget 2025 speech. Analysts believe this move will have a significant impact on consumption patterns and economic growth, boosting morale among government employees.