8th Pay Commission: A significant update has emerged regarding the 8th Pay Commission. Earlier this year, Union Minister Ashwini Vaishnaw announced that the Union Cabinet, led by Prime Minister Narendra Modi, has approved the formation of the 8th Pay Commission. This development was revealed just days before the presentation of Budget 2025.
The primary objective of the 8th Pay Commission is to revise the salaries, allowances, and pensions of central government employees and retirees. At present, central employees are awaiting the formal appointment of the commission’s panel members. According to reports, the government is likely to announce the chairman and two members of the panel by April.
Expected Salary Increase Under the 8th Pay Commission
An increase in salaries is anticipated under the 8th Pay Commission, with adjustments expected based on the fitment factor. Media reports suggest that the minimum salary for government employees could be revised from Rs 18,000 to Rs 51,480 per month under the new pay structure.
Understanding the Fitment Factor
The fitment factor plays a crucial role in salary adjustments under the Pay Commission framework. This multiplier is used to determine increases in salaries, pensions, and allowances. It is calculated by considering multiple factors, including inflation, employee requirements, and the government’s financial capability.
Who Will Benefit from the 8th Pay Commission?
The 8th Pay Commission is expected to benefit nearly 5 million central government employees, including defense personnel. Additionally, approximately 6.5 million pensioners, including retired defense employees, are projected to gain from the revised pay structure.
Implementation Timeline of the 8th Pay Commission
Union Minister Ashwini Vaishnaw has indicated that the commission is expected to be established by 2026. Reports suggest that the new pay structure may come into effect starting January 1, 2026.
Frequency of Pay Commission Formations
Typically, a new Pay Commission is constituted every ten years. Since 1946, the government has set up seven Pay Commissions. The current pay structure follows the recommendations of the 7th Pay Commission, which was established in 2014 under the Manmohan Singh-led UPA government and implemented on January 1, 2016.
