The salaries and pensions of over 1.2 crore central government employees and retirees in the country could see an increase soon. The government is expected to announce the establishment of the 8th Pay Commission during the annual budget presentation for the financial year 2025-26 on February 1.
This speculation has been fueled by recent discussions surrounding the potential announcement of the 8th Pay Commission and the associated 186% salary hike.
Employee organizations have met with the Finance Minister
In a pre-budget meeting with Finance Minister Nirmala Sitharaman, ten central trade unions, along with the Bharatiya Mazdoor Sangh, urged the government to promptly establish the 8th Pay Commission.
Central government employees are advocating for the implementation of this commission to address their concerns regarding salary increases and additional benefits. If the government responds to these organizations’ demands, a significant rise in the salaries and pensions of approximately 50 lakh central employees and 67 lakh pensioners could occur.
The 7th Pay Commission’s term will conclude on December 31
The Government of India sets up a Pay Commission every decade to determine the salaries of central employees. The 7th Pay Commission was established on February 28, 2014, and its recommendations were put into effect in 2016. Its term is set to end on December 31, 2025. Government employees and pensioners are hopeful that the announcement for the 8th Pay Commission will be made in this year’s budget. However, there has been no official confirmation from the government as of yet. Some reports suggest that an announcement may be forthcoming in the upcoming budget session.
Potential for a 186% salary increase
Should the 8th Pay Commission be implemented, employees could see their salaries rise by as much as 186% due to an increase in the fitment factor. Currently, the minimum basic salary for central employees stands at Rs 18,000, which could potentially rise to Rs 51,480.
The fitment factor is a key coefficient used to determine employees’ basic salaries. Under the 7th Pay Commission, this factor was set at 2.57, but there are talks of raising it to 2.86 in the 8th Pay Commission. This proposed increase would significantly boost employees’ salaries.
