Big news for central government employees. The central government gave the green light for the Eighth Pay Commission for central employees before rolling out the Budget 2025. However, central employees are still on standby for the official announcement regarding its formation and next steps. Looking back at how long it took to set up previous Pay Commissions, they were usually established within 2 to 5 months after approval, but there’s no set timeline for this one.
Call for a uniform fitment factor
Various media outlets report that some groups representing central employees are pushing for a uniform fitment factor across all job levels. This means they want salary increases for all employees to be based on the same fitment factor.
Is a 50% salary hike on the table for everyone?
A report mentions that NC-JCM (Staff Side) Secretary Shiv Gopal Mishra told NDTV Profit, “We want the fitment factor to be consistent across all pay bands, from pay band 1 to pay band 4. This will be our request for the 8th Pay Commission.” This raises the question: will all central employees see a 50% salary increase with the new commission?
The 8th Pay Commission got the nod in January 2025
Just to clarify, Prime Minister Narendra Modi approved the establishment of the 8th Pay Commission for central employees and pensioners last month, in January, while the 7th Pay Commission wraps up this year. The government still needs to announce the Terms of Reference (ToR) and the members for the new commission. However, if they stick to the usual 10-year pattern, the new pay commission should kick in on January 1, 2026.
During the 7th Pay Commission, the fitment factor for salary adjustments for employees in Band 1 was set at 2.57. For Pay Band 2, it was 2.62, while Pay Band 3 had a factor of 2.67, and Pay Band 4 saw the highest at 2.72, giving those employees the biggest salary bump. Additionally, for the highest level of salary revision based on the regionalization index, the 7th Pay Commission established a fitment factor of 2.81.
So, will all employees see a 50% salary increase?
A report suggests that the 8th Pay Commission might set a fitment factor ranging from 2.28 to 2.86. If that happens, central government employees could see their basic salaries rise by 40-50%.