A major update for central government employees and pensioners has come regarding the 8th Pay Commission.If implemented, their monthly salary could rise by Rs 14,000 to Rs 19,000.
According to reports, the government may establish the 8th Pay Commission in April 2025, with its recommendations potentially taking effect by 2026 or 2027.
How Much Salary Increase is Expected?
Currently, the average monthly salary of central government employees is around Rs 1 lakh. With the 8th Pay Commission, it could increase by 14-19%.
If the government allocates Rs 1.75 lakh crore, the salary hike could be around Rs 14,600. With a budget of Rs 2 lakh crore, the increase may go up to Rs 16,700, and with Rs 2.25 lakh crore, the increase could reach Rs 18,800.
Which Employees Will Benefit?
Over 50 lakh central government employees and 65 lakh pensioners will directly benefit from the 8th Pay Commission.
In comparison to the Rs 1.02 lakh crore spent during the 7th Pay Commission, this time the government is likely to allocate a much larger budget, leading to a significant salary and pension increase.
What About the Fitment Factor?
The fitment factor is a key formula used to determine salary increases. For the 7th Pay Commission, it was set at 2.57, which raised the minimum salary from Rs 7,000 to Rs 18,000.
If the same factor is applied to the 8th Pay Commission, the minimum salary could rise to Rs 46,260, and pensions could increase from Rs 9,000 to Rs 23,130.
However, some experts suggest the fitment factor could be lower, around 1.92, which would result in a minimum salary of Rs 34,560.
Special Details About the 8th Pay Commission
On January 16, 2025, the Union Cabinet approved the formation of the 8th Pay Commission.
However, the details regarding its chairman, members, and rules have not yet been revealed.
The new salary structure will depend on the commission’s report. How much employees benefit from the hike will largely depend on the government’s budget and the commission’s recommendations.
Expert Opinions
The Secretary of the National Council-Joint Consultative Machinery has stated that the fitment factor should be at least 2.57 or higher.
However, former Finance Secretary Subhash Garg believes a 2.86 fitment factor is impractical and expects it to be closer to 1.92.
Regardless, the implementation of the 8th Pay Commission is expected to significantly boost the income of both central government employees and pensioners.
All eyes are now on the government’s decision and the commission’s final recommendations.
