Modi Cabinet Approves 8th Pay Commission: Recommendations from 2026; Third Launch Pad at Sriharikota
The central government on Thursday approved the formation of the 8th Pay Commission for central employees. The recommendations of this commission will be implemented starting in 2026. After the cabinet meeting, Union Minister Ashwini Vaishnaw shared this information, stating that the 7th Pay Commission, implemented in 2016, will remain effective until 2026.
7th Pay Commission Impact
The 7th Pay Commission came into effect on January 1, 2016, benefiting approximately 1 crore people. Pay commissions are introduced every 10 years. The Modi government is expected to implement the 8th Pay Commission starting January 1, 2026, which will lead to an increase in the minimum salary and pensions of central employees.
How Will the 8th Pay Commission Affect Salaries?
The central government introduces a new pay commission every 10 years. The current 7th Pay Commission’s tenure will end on December 31, 2025. It is anticipated that the 8th Pay Commission will be implemented from 2026.
The salary matrix under the 8th Pay Commission will be prepared using a 1.92 fitment factor. Here’s an example: Central employees’ salaries are divided into 18 levels. The basic salary for Level-1 employees is ₹18,000, with a grade pay of ₹1,800. Under the 8th Pay Commission, this could increase to ₹34,560. Similarly, cabinet secretary-level officers at Level-18 currently receive a maximum basic salary of ₹2.5 lakh, which could rise to approximately ₹4.8 lakh.
How Will Pension Increase Under the 8th Pay Commission?
If the 8th Pay Commission is implemented in January 2026, the minimum salary for central employees is estimated to be ₹34,560. For example, if a Level-1 employee’s basic salary becomes ₹34,560, 50% of this amount, i.e., ₹17,280, will be received as a pension, along with the Dearness Relief (DR) component. However, employees typically receive promotions over time, leading to higher pension amounts.
At the same time, for Level-18 employees with a basic salary of ₹4.8 lakh, 50% of this amount, ₹2.4 lakh, plus DR, will be provided as a pension.
Approval for a Third Launch Pad at Sriharikota
The central government has also approved the construction of a third launch pad at Sriharikota. Currently, the facility has two launch pads, from which over 60 launches have been conducted. The third launch pad will enhance the number of satellite and spacecraft launches.
With this addition, India will be able to meet its essential launch missions and cater to global demand. This cabinet decision will support the New Generation Launch Vehicle Program. The launch pad will be built at a cost of ₹3,985 crore.
Key Decisions Made by the Central Government in Recent Cabinet Meetings
January 1, 2025: Fertilizer Subsidy Continued
On the first day of 2025, the government made significant decisions for farmers. The cabinet approved the extension of the Pradhan Mantri Fasal Bima Yojana and the Weather-Based Crop Insurance Scheme until 2025-26. Subsidies on fertilizers will also continue, with a 50 kg DAP fertilizer bag priced at ₹1,350, the same as before.
December 6, 2024: New KV and NV Schools Announced
In a cabinet meeting, the government approved the establishment of 85 Kendriya Vidyalayas (KV), 28 Navodaya Vidyalayas (NV), and the construction of the Rithala-Kundli Metro corridor. Union Minister Ashwini Vaishnaw announced that the Navodaya Vidyalayas would be built in districts not yet covered under the scheme. The PM Shri Schools initiative has been introduced for implementing the new education policy.
