The central government has approved the constitution of the 8th Central Pay Commission to review and recommend salary adjustments for central government employees. The commission is expected to submit its report by 2026.
Reports suggest that central government employees may see a 186% increase in their minimum salaries under the new pay commission. Currently, employees receive a minimum basic salary of Rs 18,000 per month under the 7th Pay Commission.
Minimum Salary, Pension Under 8th Pay Commission
Shiv Gopal Mishra, Secretary (staff side) of the National Council of Joint Consultative Machinery (JCM), expects a fitment factor of at least 2.86 under the 8th Pay Commission, which is higher compared to the 2.57 fitment factor under the 7th Pay Commission.
If the fitment factor of 2.86 is approved, the minimum salary of government employees could increase to Rs 51,480, a significant rise from the current Rs 18,000. The hike in fitment factor will also impact pensions, which are expected to increase by 186% to Rs 25,740.
Formation of 8th Pay Commission
While there is no official announcement on the formation date of the new pay commission, media reports suggest it might be announced in the next Budget 2025-26. The National Council of Joint Consultative Machinery is expected to provide clarity on this in December after a postponed meeting.
The NC-JCM submitted a memorandum in July 2024 requesting the establishment of the 8th Pay Commission, with further appeals made in August 2024.
7th Pay Commission: History and Impact
The 7th Pay Commission, formed in February 2014, led to significant salary increments for government employees. Its recommendations were implemented from January 1, 2016, including raising the minimum basic pay, revising the pay structure and allowances, and introducing health insurance schemes.
Pay commissions are typically formed every 10 years, although there is no legal provision for it. Currently, there are over 1 crore central government employees and pensioners.
