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Picture Courtesy: Hindustan Times

Context:

The Union Cabinet decided to set up the 8th Pay Commission to revise salaries of central government employees and allowances of pensioners.

Details

The government announced that the chairman and two members of the commission will be appointed soon and that there will be consultations with central and state governments along with other stakeholders.

The decision is expected to benefit around 50 lakh government employees and 65 lakh pensioners.

About Pay Commission

The Central Pay Commission is a government body that recommends changes to the salary structure of government employees. The commission also reviews benefits like bonuses, allowances, and perks. 

How does it work?

• The government of India establishes a Pay Commission every 10 years. 
• The commission makes recommendations to the government over salary and pension structure. 
• The commission considers factors like inflation, cost of living, and economic conditions. 
• The commission makes recommendations for both civil and military employees. 

What does the Commission do?

• It reviews and recommends revisions in the salary and pension structure of the beneficiaries, resulting in a hike in the remuneration and allowances.
• It also reviews bonuses, perks, allowances, and other benefits provided to government employees. 

History

• The first Pay Commission was established in 1947. 
• Since 1947, 7 Pay Commissions have been constituted, with the last one constituted in 2014 and implemented on January 1, 2016, and its term will end in 2026.
• The 7th pay commission saw an expenditure increase of Rs 1 lakh crore for fiscal 2016-17.
• In January 2025, the government approved the 8th Pay Commission. 

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Source: 

Hindustantimes