
Key Announcement
The Union Cabinet has approved the formation of the 8th Pay Commission, which will review and recommend salary structures for central government employees and pensioners. This decision comes amid demands for a pay hike to address rising living costs.
What to Expect
The commission is expected to propose new salary scales, benefits, and allowances. The government aims to submit its recommendations by early 2026, with implementation likely from mid-2027.
Economic Impact
While the decision is welcomed by employees, economists caution that increased expenditure on salaries could impact India’s fiscal deficit. Nevertheless, the move is seen as a significant step towards addressing inflationary pressures faced by public sector workers.