8th Pay Commission: On January 16, 2025, the Union Cabinet, under the leadership of Prime Minister Narendra Modi, sanctioned the formation of the 8th Pay Commission, which aims to revise the salaries of approximately 5 million central government employees and the allowances for 6.5 million pensioners. As reported by various media outlets, the Pay Commission is expected to establish a fitment factor ranging from 1.92 to 2.86.
Should the recommendation of a 2.86 fitment factor be approved, the minimum basic salary for government employees would rise from RS 18,000 per month to RS 51,480. Consequently, the minimum pension would also see an increase from the current Rs 9,000 to RS 25,740.
7th Pay Commission
The 7th Pay Commission presented its recommendations in February 2014, which were subsequently implemented in November 2016. During this period, the minimum salary was raised to Rs 18,000 per month, while the maximum salary reached Rs 2,50,000 per month. The Commission proposed a new pay matrix to replace the existing grade pay system, emphasizing allowances and work-life balance.
6th Pay Commission
The Sixth Pay Commission introduced salary bands and grade salaries, establishing a minimum salary of Rs 7,000 per month and a maximum of Rs 80,000 per month. Although the Sixth Pay Commission was implemented in March 2008, the increased salaries for employees were retroactively announced from January 2006.
5th Pay Commission
Established in April 1994, the 5th Pay Commission’s recommendations were put into effect in January 1996. It proposed a minimum salary of Rs 2,550 and a maximum of Rs 26,000 per month, while also recommending a reduction in the number of pay scales and focusing on the modernization of government offices.