8th Pay Commission: Central govt employees, pensioners await salary hike details

Central government employees are eagerly awaiting the formation of the 8th Pay Commission, as the 7th Pay Commission nears its end. Established in 2014, the 7th Pay Commission’s recommendations were implemented in January 2016, and it will complete its 10-year tenure by January 2026. The formation of a new pay commission is a key step in revising employees’ salaries and pensions.

Unlike the swift establishment of the 7th Pay Commission, the formation of the 8th Pay Commission has faced delays. However, media reports suggest that its formation is imminent, following the tradition of setting up a Pay Commission roughly every decade.

One key factor in salary adjustments is the fitment factor, a multiplier used to revise salaries and pensions. The 7th Pay Commission applied a fitment factor of 2.57, raising the minimum salary from Rs 7,000 to Rs 17,990. Employee unions, however, had demanded a higher factor of 3.67. For the 8th Pay Commission, union representatives like Shiv Gopal Mishra expect a fitment factor of at least 2.86. If this is implemented, the minimum salary would increase to Rs 51,480, while pensions would rise to Rs 25,740.

Earlier this month, the National Council of Joint Consultative Machinery (NC-JCM) met with Finance Secretary Tuhin Kanta Pandey to discuss the immediate formation of the 8th Pay Commission. The NC-JCM represents the interests of central government employees and had submitted two memorandums requesting the formation of the 8th Pay Commission. The first was presented during the Union Budget in July 2024, and the second to the new Cabinet Secretary, T.V. Somanathan, in August.

Leading up to the Union Budget 2024-25, speculation had suggested that the Centre might announce the establishment of the 8th Pay Commission. However, no such announcement was made. As employees await confirmation, attention remains focused on what the new commission will bring.