The Central Government has recently approved the establishment of the 8th Central Pay Commission that will make changes to workers’ and pensioners’ salaries, pensions and benefits. Such a decision will affect millions of workers and retirees throughout the country.

As central ministries and state governments alongside Public Sector Undertakings (PSUs) are being consulted, a broad consultation will take place. This Commission is expected to hand in their recommendations by 2026 and will comprise a chairman and two other members. 

Union Minister Ashwini Vaishnaw explained that this is an important step in the process, however, the approval to the commission has been made but the provision was not notified as on the agenda for the cabinet meeting and hence not part of it. 

The Pay Commission in Sector: What’s its Importance?

By the role of the Central Pay Commission, the pay structures are required to be among others readjusted quite regularly, taking into account the inflation rate, general economic environment, and the needs of the changing working population. These were the recommendations of the previous state commission, that was put into effect in 2016.