The central government has approved the formation of the 8th pay commission. It will directly benefit 50 lakh central employees and 65 lakh pensioners, who will stand to benefit from potential salary and pension revisions.
This development follows the 7th pay commission, which was implemented in 2016 and increased the minimum salary of central government employees from Rs 7,000 to Rs 18,000.
Expected salary increase in 8th Pay Commission
The exact increase in salary is not decided by the government right now, but the initial report suggests an enhancement in the fitment factor, which is used to increase the salary. Right now, the fitment factor is set at 2.57, which, according to the projection, is expected to increase to 2.86.
To understand the implications of this change let us consider the employee has a basic salary of Rs 60,000 and if the new fitment factor increases to 2.86 the new basic pay will be calculated as follows:
New basic pay= 60,000*2.86= Rs 1,71,600
If there is no revision on the fitment factor then it will be 2.57 so the new basic pay would be 60,000*2.57= 1,52,200.
Anticipated growth in salaries
As per the information the exports are stating that the Hike on the central government employees salary will be approximately 25 to 30%. However, historically the 6th pay commission has given the Hike to the Central Government employees was nearly 40%. The hike in the 7th pay commission was between 23 to 25%.
In addition to basic pay, it is likely to review the command adjustment on the allowances and pension. The commission will assess the inflation rate economic condition and employees’ requirements. The final report will be submitted and approved then it is expected the revised pay commission to start on January 1, 2026.