Finally the Union Cabinet, led by Prime Minister Narendra Modi, gave the green light for the 8th Central Pay Commission, and central government employees and pensioners couldn’t be happier. They’re optimistic that this new Pay Commission will suggest a significant salary hike to help them deal with rising inflation. The current 7th Pay Commission will wrap up its term in 2026, paving the way for the 8th Pay Commission to take over.

 

There was a salary boost

The recommendations from the 7th Pay Commission led to a notable salary increase for central government employees. Pensioners also saw a rise in the amounts credited to their accounts.

 

It’s important to note that the government sets up pay commissions to advise on the salaries of central government employees, and these commissions are established every decade. The 7th Pay Commission was formed in February 2014, with its recommendations rolling out in 2016.

 

This was the fitment factor

The go-ahead for the 8th Pay Commission has brought a sigh of relief to over 1 crore central employees and pensioners who will benefit from the new commission. The 7th Pay Commission set the fitment factor at 2.57, which raised the minimum basic salary for central employees from Rs 7,000 to Rs 18,000. Additionally, the government bumped up the minimum pension to Rs 9,000.

 

 

 

Shiv Gopal Mishra, the Secretary of the National Council of Joint Consultative Machinery (NC-JCM), recently mentioned that the upcoming pay commission is likely to suggest a fitment factor of at least 2.86. This could mean a whopping 186% salary hike for central government employees. If the government gives the green light to this fitment factor, the lowest basic salary for these employees might jump from Rs 18,000 to Rs 51,480. Additionally, pensions could see a rise from Rs 9,000 to Rs 25,740 based on this new factor.

 

Here’s how it all adds up: Union Minister Ashwini Vaishnav has hinted that the new pay commission will be rolled out in 2026. He confirmed that the government has approved the establishment of the 8th Pay Commission to ensure timely recommendations and implementation by 2026. Just to give you some context, the first pay commission raised the minimum basic monthly salary for central employees from Rs 10 to Rs 30, and the second pay commission bumped it up to Rs 80.

 

Over the years, the minimum basic monthly salary has seen significant increases: it was Rs 185 under the third pay commission, Rs 750 under the fourth, Rs 2,550 under the fifth, Rs 7,000 under the sixth, and Rs 18,000 under the seventh pay commission.