8th Pay Commission: On 16 January 2025, the Union Cabinet sanctioned the 8th Pay Commission to revise the salaries of central government workers. As per various media reports, the National Council Joint Consultative Machinery (NC-JCM) has recently requested a fitment factor of no less than 2.57 (equivalent to the 7th Pay Commission) or higher from the government.
Fitment factor
The fitment factor is the coefficient applied to adjust the basic salary and pension of government workers. For instance, a fitment factor of 2.57 indicates a salary increase of 157 percent.
We would like to mention that a fitment factor of 2.57 was employed in the Seventh Pay Commission, resulting in a 157 percent rise in the salaries and pensions of central government employees, raising the minimum salary from Rs 7 thousand to Rs 18 thousand.
How much salary can increase
In this scenario, the inquiry is whether the government reintroduces this fitment in the 8th Pay Commission, what will be the rise in the salaries of employees currently earning Rs 18 thousand. It is important to mention that should the government agree to NC-JCM’s demand, the existing minimum wage will rise from Rs 18 thousand a month to Rs 46,260. In addition to this, the lowest pension of Rs 9 thousand monthly will rise to Rs 23,130.
As per media reports, a fitment factor of 2.86 was additionally requested under the 8th Pay Commission. Nevertheless, ex-Finance Secretary Subhash Garg referred to it as a request for the impossible. He also proposed a fitment factor of approximately 1.92. In this context, if the fitment factor of 1.92 is approved, the lowest salary for central government employees will rise from 18,000 to 34,560. The government may declare the establishment of the 8th Pay Commission by April 2025.