The 8th Pay Commission could bring big relief for central government employees and pensioners across India. As per recent reports, salaries might increase by up to ₹19,000 per month once the new pay structure is implemented. This revision could benefit nearly 50 lakh employees and 65 lakh pensioners.
What Is the Pay Commission?
The Pay Commission is a government panel formed every 10 years to review and recommend changes in the salaries, pensions, and allowances of central government employees and retirees. It considers various factors like inflation, cost of living, and the country’s economic condition while making suggestions.
The 7th Pay Commission, implemented in 2016, raised the minimum basic salary from ₹7,000 to ₹18,000 by using a fitment factor of 2.57.
How Much Salary Hike Is Expected in the 8th Pay Commission?
According to a report by NDTV, citing Goldman Sachs, a mid-level central government employee earning ₹1 lakh per month could see the following changes based on different budget allocations:
- ₹1.75 lakh crore budget: Salary may rise to ₹1,14,600
- ₹2 lakh crore budget: Salary may rise to ₹1,16,700
- ₹2.25 lakh crore budget: Salary may rise to ₹1,18,800
This means employees could get a monthly hike of ₹14,600 to ₹18,800 depending on the final budget allocation.
When Will the 8th Pay Commission Be Implemented?
As per the same report, the 8th Pay Commission may be formed in April 2025. Its recommendations might come into effect by 2026 or 2027. This gives the government time to consult stakeholders, including employee unions.
What About the Fitment Factor?
The fitment factor is a number used to calculate the new basic salary from the old one. In the 7th Pay Commission, it was set at 2.57. Employee unions are expected to demand a similar or higher number in the 8th Commission.
However, former Finance Secretary Subhash Chandra Garg feels this may be too ambitious. He suggests that a more realistic fitment factor could be around 1.92, which would still result in a decent salary hike, though not as high as some expect.
Who Will Benefit?
If implemented, around 50 lakh central government employees and 65 lakh pensioners would get better pay or pensions. This change would not only improve the standard of living for these people but could also boost spending and help the economy grow.
The upcoming 8th Pay Commission could be a game-changer for lakhs of central government employees and pensioners. With the possibility of a salary hike of up to ₹19,000 per month, many are looking forward to the official announcement.
Though the final fitment factor and budget are yet to be decided, there is hope that the new pay structure will bring much-needed financial relief. Whether the increase happens in 2026 or 2027, this revision could make a significant impact on the lives of millions.
