Game-changing 8th pay commission: Central govt employees could see salaries rise by 186%

Central government employees may see a 186% increase in their minimum salary under the 8th Pay Commission, potentially raising it to Rs 51,480. This hike is possible if the fitment factor is set at 2.86, and pensions would also increase.

186% Salary Increase For Govt Employees

Central government employees anticipate a potential 186% salary increase under the 8th Pay Commission. The current minimum basic pay is Rs 18,000 under the 7th Pay Commission, up from Rs 7,000 under the 6th Pay Commission.

8th Pay Commission Expectations

Shiv Gopal Mishra, National Council of JCM Secretary (Staff Side), expects a minimum fitment factor of 2.86. This is 29 basis points higher than the 2.57 fitment factor under the 7th Pay Commission. A 2.86 fitment factor could increase minimum salary to Rs 51,480.

Pension Increase Projections

Compared to the current Rs 18,000, the minimum salary could see a significant rise. The increased fitment factor also impacts pensions. Under the 8th Pay Commission, pensions are expected to increase by 186% to Rs 25,740, compared to the current Rs 9,000.

7th Pay Commission Impact

While no official date for the new pay commission has been announced, media reports suggest it might be announced in the next budget (2025-26). Demands were presented in the 2024-25 budget, and employee unions approached the Cabinet Secretary and Finance Ministry.

Central Govt Salary Hike

Clarity on the 8th Pay Commission is expected in December after the National Council of JCM meeting, which was postponed from this month. In July 2024, the NC-JCM submitted a memorandum requesting immediate action to establish the commission.

Minimum Salary Hike History

The 7th Pay Commission, formed in February 2014, led to significant salary increases for government employees. Its recommendations were implemented from January 1, 2016, raising the minimum basic pay from Rs 7,000 to Rs 18,000.

Pay Commission Formation

A pay commission is typically formed every 10 years, although there's no legal mandate. It's a convention. Currently, there are over 10 million central government employees and pensioners.