The Union Cabinet, led by Prime Minister Narendra Modi, has approved the recommendations and regulations proposed by the 8th Pay Commission, which determines the salary and pension benefits of central government employees. Earlier this year, in January, the government announced the formation of the 8th Pay Commission to review and recommend changes in the pay structure and allowances of central government employees. The commission is expected to submit its report within 18 months of its appointment. Former Supreme Court judge Ranjana Prakash Desai has been appointed as the chairperson of the commission. According to Information and Broadcasting Minister Ashwini Vaishnaw, the recommendations of the 8th Pay Commission are likely to be implemented from January 1, 2026. The commission will consider various factors, including the nation’s economic conditions, financial requirements, development and welfare expenditure, the fiscal impact of non-contributory pension schemes, the financial position of the states, and the existing pay structures, benefits, and working conditions of employees in central public sector undertakings and the private sector before making its final recommendations.

