A piece of very important news is coming out about the 8th Pay Commission for central employees and pensioners. The government can soon give a gift of happiness to these employees. There are strong reports that the 8th Pay Commission can be constituted by May 2025. Let us tell you that the central government has given its approval to the much-awaited 8th Pay Commission, although the official formation of the panel is yet to be done. Finance Minister Nirmala Sitharaman had said last month that the new commission would be constituted soon.
In such a situation, according to media reports, the formation of the 8th Pay Commission is possible by May 2025. This news has brought a new ray of hope for more than 36 lakh central employees and pensioners who are eagerly waiting due to this delay. It is expected that the government will constitute the panel by the end of May, giving it enough time to implement its recommendations before the term of the current Pay Commission ends on January 1, 2026.
How will the powerful panel of the 8th Pay Commission be
If we closely look at the previous 7th pay commissions, every panel was headed by the chairman – usually a retired Supreme Court judge or the senior bureaucrat. Along with these, the team usually includes economists and experts on government expenditure, pensions, and allowances. The main objective of such a team is to suggest to the government how much salary and pension should be increased and how to determine dearness allowance (DA) and fitment factor. This time too, a strong and experienced panel is expected which will give meaningful recommendations keeping in mind the interests of employees and pensioners.
Expectations from the Eighth Pay Commission
According to the estimates, the upcoming Eighth Pay Commission may propose the salary hike of 40% to 50% for the central employees and pensioners. This will be now based on the new revised fitment factor, which can be now between 2.28 to 2.86. If the upper limit is completely approved, an employee with the basic salary of ₹20,000 can get the salary between the ₹46,600 to ₹57,200 in pension.
The history of the pay commissions shows the steady increase in basic salary. During the 5th Pay Commission, the basic salary was ₹2,750. It became ₹7,000 under the 6th Commission and ₹18,000 under the 7th Commission, showing an overall increase of about 554%. The 8th Pay Commission is also likely to bring encouraging salary hikes for employees, which will improve their financial condition.
At the same time, some employee organizations are demanding that the fitment factor be increased to 3.68 so that the old salary of ₹30,000 can reach ₹1,10,400. If this demand is accepted, then employees may see a historic increase in their salaries. This news is creating an atmosphere of excitement for central employees and pensioners.