Why in News? 

On January 16, 2025, Prime Minister Narendra Modi’s cabinet approved the 8th Central Pay Commission to review and update salaries, allowances, and pensions for central government employees, as announced by Union Minister Ashwini Vaishnaw. 

 Key Points About the Pay Commission 

• Definition: The Pay Commission is a body established by the Central Government to review and recommend revisions to the salary structure of its employees. 
• Governance: It functions under the Department of Expenditure, part of the Ministry of Finance. 
• Frequency: Typically constituted every 10 years, starting with the first Pay Commission in 1946. 
• History: Since Independence, seven Pay Commissions have been formed, with the most recent (7^th Pay Commission) established in 2014. Its recommendations were implemented in 2016. 
• Current Structure: Central government employees and pensioners currently receive salaries based on the recommendations of the 7^th Pay Commission. 
• Government Discretion: The recommendations made by the Pay Commission are advisory and not binding; the government can accept, modify, or reject them.