8th Pay Commission: What Is The Expected Hike In Salary And When Is It Coming Into Effect?

As central government employees await the formal announcement of the 8th Pay Commission, reports suggest that their minimum salaries may see a significant increase of 186%. This development comes amid growing demands for improved pay scales and benefits.

8th Pay Commission: Current Salary Structure and Expected Hike

Under the 7th Pay Commission, the minimum basic salary was increased from Rs 7,000 (under the 6th Pay Commission) to Rs 18,000 per month. Now, with the anticipated implementation of the 8th Pay Commission, the minimum salary could rise substantially to Rs 51,480 if the proposed fitment factor is approved.

8th Pay Commission: Proposed Fitment Factor and Its Impact

Shiv Gopal Mishra, Secretary (staff side) of the National Council of Joint Consultative Machinery (JCM), stated that the fitment factor under the 8th Pay Commission is expected to be 2.86, up from 2.57 under the 7th Pay Commission.

Salary Increase: With this factor, the minimum salary would jump to Rs 51,480, representing a 186% increase.

Pension Increase: Similarly, pensions are expected to rise from Rs 9,000 to Rs 25,740.

Any additional hike in the fitment factor would proportionally enhance salaries and pensions for employees and retirees.

When Is 8th Pay Commission Coming Into Effect?

Although no official date for the formation of the 8th Pay Commission has been announced, media reports speculate that it may be declared during the Budget 2025–26.

Previous Attempts: Employee unions had pushed for its announcement during the 2024–25 Budget, submitting requests to the Cabinet Secretary and the Ministry of Finance.

Upcoming Meeting: A clearer timeline is expected after the National Council of Joint Consultative Machinery’s meeting in December 2024. This meeting, initially scheduled for earlier this year, has been delayed.

The Council, representing employee grievances, has repeatedly urged the government to expedite the formation process, submitting appeals in July and August 2024.

7th Pay Commission: A Quick Recap

The 7th Pay Commission, formed in February 2014, introduced significant changes to government employee compensation, implemented from January 1, 2016.

Key recommendations included:

Increasing the minimum basic salary from Rs 7,000 to Rs 18,000.

Revising pay structures, allowances, and pensions.

Introducing health insurance for employees and pensioners.

Updating pension formulations for retirees prior to January 2016.

With discussions around the 8th Pay Commission intensifying, central government employees are hopeful for a substantial enhancement in their pay and benefits, signaling a major shift in their compensation structure.

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