8th Pay Commission: Government employees eye Rs 8,000 to Rs 26,000 hike with 3.68x fitment factor

Recently, Union Minister Ashwini Vaishnaw confirmed that Prime Minister Narendra Modi has approved the commission, which will impact the salaries of approximately 49 lakh government employees and 68 lakh pensioners.

Bringing a wave of anticipation among central government employees and pensioners, the Modi government has given its nod for the 8th Central Pay Commission. Recently, Union Minister Ashwini Vaishnaw confirmed that Prime Minister Narendra Modi has approved the commission, which will impact the salaries of approximately 49 lakh government employees and 68 lakh pensioners.

Key milestone in pay revisions:

Since independence, as many as seven Pay Commissions have been established to ensure fair compensation for government employees, with the last one implemented in 2016. The 7th Pay Commission's recommendations brought revised salaries to employees in August 2016. As its term concludes in 2026, the government’s decision to initiate the 8th Pay Commission process in 2025 allows ample time to draft, review, and implement recommendations.

Union Minister Vaishnaw highlighted the importance of timely action, stating, "Since 1947, seven Pay Commissions have been constituted. Starting the process in 2025 ensures sufficient time to receive and review recommendations before the 7th Commission’s term ends."

Fitment factor likely at 3.68x:

The cornerstone of the Pay Commission's recommendations often revolves around the fitment factor, which determines the salary hike across all pay grades. If the 8th Pay Commission adopts a fitment factor of 3.68x, it could translate into a significant pay hike for central government employees.

Currently, the minimum basic salary stands at Rs 18,000. With the proposed fitment factor, employees could see a jump of Rs 8,000, raising the minimum basic salary to Rs 26,000. This increase is expected to bring substantial relief and improve financial stability for millions of employees.

A legacy of positive impact:

The 7th Pay Commission’s implementation in 2016 served as a benchmark for fair wage revisions, covering various aspects like Minimum Pay, Fitment Factor, and Pay Matrices. It also addressed discrepancies in the Defence Pay Matrix to maintain parity with the Central Armed Police Forces.

The 8th Pay Commission is expected to follow suit, ensuring equitable pay adjustments and reflecting the evolving economic realities. The upcoming recommendations are anticipated to strike a balance between government expenditure and employee welfare, much like its predecessors.