A big update is here regarding the 8th Pay Commission. Union Minister Ashwini Vaishnaw announced earlier this year that the Union Cabinet, under the leadership of Prime Minister Narendra Modi, has approved the establishment of the 8th Pay Commission to update the salaries of central government employees. This announcement came just days before the Budget 2025 presentation.
The 8th Pay Commission will focus on revising the salaries and allowances of central government employees, as well as the pensions for retired personnel. Currently, central employees are awaiting the appointment of the commission’s panel members. Reports suggest that the government may reveal the chairman and two members of the panel in April.
Salary increases under the 8th Pay Commission are anticipated, with estimates indicating that the government could raise employee salaries based on the fitment factor. Media reports indicate that the minimum salary for employees could rise from Rs 18,000 to Rs 51,480 per month under the new pay structure.
What is the fitment factor?
The fitment factor is a crucial multiplier used to adjust salaries, pensions, and allowances within the Pay Commission framework. It is determined by considering various elements such as national inflation, employee needs, and the government’s financial capacity.
Who will benefit from the 8th Pay Commission?
The 8th Pay Commission is projected to benefit approximately 5 million central government employees, including those in the defense sector. Additionally, around 6.5 million central government pensioners, including retired defense personnel, are expected to gain from the upcoming revisions.
When will the 8th Pay Commission start?
Union Minister Ashwini Vaishnav has indicated that the commission is expected to be established by 2026. Reports suggest that the 8th Pay Commission could take effect from January 1, 2026.
How often is a Pay Commission created?
Typically, a Pay Commission is set up every ten years. Since 1946, the government has established seven Pay Commissions. Currently, we are following the recommendations from the 7th Pay Commission, which was set up in 2014 under the Manmohan Singh-led UPA government. These recommendations were put into action on January 1, 2016.