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The Indian government announced the 8th Pay Commission on January 17, 2025, sparking curiosity among central government employees regarding its implementation.
According to the latest updates, the new pay commission will come into effect from January 1, 2026. However, the exact timeline for the formation of the commission is yet to be disclosed. Based on past trends, it is expected that the commission will be constituted within 2 to 5 months of its announcement.
Formation Timeline of Previous Pay Commissions
Looking at the historical data, the formation of previous pay commissions took varying durations after their announcement:
- 7th Pay Commission: Announced in September 2013, constituted in February 2014 (5 months later).
- 6th Pay Commission: Announced in July 2006, constituted in October 2006 (3 months later).
- 5th Pay Commission: Announced in April 1994, constituted in June 1994 (2 months later).
Following this pattern, it is anticipated that the 8th Pay Commission committee will be formed within the next few months. However, its exact formation and implementation depend on various economic and administrative factors.
Impact of 8th Pay Commission on Salaries
The 8th Pay Commission is expected to benefit approximately 50 lakh central government employees and 65 lakh pensioners. As per expert estimates, the basic salary could see a hike of 40-50% based on the fitment factor.
The National Council of Joint Consultative Machinery (NC-JCM) has demanded a uniform fitment factor for all employees to ensure fair and equal salary increments. The fitment factor determines how much the basic salary will increase after implementation.
Expected Salary Hike
Currently, the fitment factor is expected to range between 2.28 to 2.86, leading to a significant rise in salaries:
- A central government employee earning a basic salary of ₹ 20,000 may see an increase to approximately ₹46,600 – ₹ 57,200 after implementation.
- The revised salary structure will also impact pensions, allowances, and other benefits.
Past Salary Increases Under Pay Commissions
– 7th Pay Commission: Led to an expenditure rise of ₹ 1 lakh crore in FY 2016-17.
– 6th Pay Commission: Implemented in 2006, brought substantial salary hikes across different pay scales.
The financial burden of implementing the 8th Pay Commission will be significant, influencing the government’s economic planning. The final decision on the fitment factor and salary increments will depend on India’s economic condition, inflation and revenue growth and government expenditure policies.
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