The Union Cabinet, led by Prime Minister Narendra Modi, has given the green light for the establishment of the 8th Pay Commission on January 16, 2025. This move aims to revise the salaries of around 50 lakh central government workers and adjust allowances for 65 lakh pensioners. Reports suggest that the new pay commission will consider a fitment factor ranging from 1.92 to 2.86.
If the government opts for the 2.86 fitment factor, the minimum basic salary for government employees will jump from Rs 18,000 a month to Rs 51,480. Consequently, the minimum pension will rise from Rs 9,000 to Rs 25,740.
Now, let’s take a look at the timeline of the previous seven pay commissions and the recommendations they made regarding salary increases for employees, including the changes in their minimum and maximum salaries.
(May 1946 – May 1947) First Pay Commission
After India became independent, a “living wage” scheme was launched. The minimum salary was set at Rs 55 per month, with a maximum of Rs 2,000, benefiting around 15 lakh employees.
(August 1957 – August 1959) Second Pay Commission
This commission aimed to balance the economy with the cost of living. It recommended a minimum salary of Rs 80 and a maximum of Rs 3,000 per month, impacting about 25 lakh employees. It also introduced the ‘Socialist Pattern of Society’.
(April 1970 – March 1973) Third Pay Commission
During this period, the minimum salary was Rs 185 per month, while the maximum salary reached Rs 3,500 per month, benefiting around 30 lakh employees.
From September 1983 to December 1986, the Fourth Pay Commission set the minimum salary at Rs 750 a month, while the maximum reached Rs 8,000. This plan benefited over 35 lakh employees.
The Fifth Pay Commission, which ran from April 1994 to January 1997, established a minimum salary of Rs 2,550 and suggested a maximum of Rs 26,000 per month, covering around 40 lakh employees.
The Sixth Pay Commission, active from October 2006 to March 2008, introduced pay bands and grade pay. The minimum salary was set at Rs 7,000, with a maximum of Rs 80,000 per month, benefiting about 60 lakh employees. It also focused on performance-based incentives.
The Seventh Pay Commission, from February 2014 to November 2016, raised the minimum salary to Rs 18,000 per month and the maximum to Rs 2,50,000. It proposed a new pay matrix to replace the grade pay system, impacting over 1 crore employees.