8th Pay Commission: Salary Increase Factors Revealed — Huge Relief for Employees & Pensioners Ahead

8th Pay Commission: Good news for central government employees. The Union Cabinet led by Prime Minister Narendra Modi approved the Terms of Reference (ToR) for the 8th Pay Commission. This decision of the government has paved the way for an increase in the salaries and allowances of lakhs of employees and pensioners.

The government clarified that the recommendations of the commission will be prepared keeping in mind the economic condition and financial management of the country. This step will not only protect the interests of the employees, but will also ensure the availability of resources for development works and welfare schemes.

These 5 factors will increase the salary of employees

1. The 8th Pay Commission will consider several important aspects. First, it will analyze the current economic situation of the country and the state of the government treasury.

2. The government’s focus will be on whether there is enough money for development expenditure and social welfare.

3. The second major issue is the unfunded expenditure of non-contributory pension schemes. These schemes do not require direct contributions from either the employee or the employer, but are funded entirely by the government. The Commission will assess this burden to ensure future financial stability.

4. State governments will also be affected. Most states adopt the central government’s recommendations with some modifications. Therefore, the Commission will also take their financial situation into account. This will help implement a uniform policy across the country.

5. In addition, the current salary structures, allowances, and working conditions of employees of central public sector undertakings (PSUs) and the private sector will be compared. This will ensure that government employees’ salaries remain competitive.

What is ToR?

It should be noted that this approval comes nearly 10 months after the announcement of the 8th Pay Commission in January 2025. The Commission’s primary task is to recommend changes to the salaries, allowances, and pensions of central government employees. The ToR is the cornerstone of the Commission’s functioning. It sets the direction for changes to the basic pay structure, various allowances, and pension amounts.