Categories: India

8th Pay Commission Update: What Central Government Employees Need to Know

The 8th Pay Commission will expectedly reassess central government pay and pensions, with a proposed higher fitment factor likely to significantly raise minimum salaries

Published by Nisha Srivastava

The 8th Pay Commission has become a major topic of discussion among central government employees and pensioners, as it will directly impact salaries and pensions. The Union government officially constituted the commission in October last year, continuing the long-standing practice of reviewing pay structures every ten years.

8th Pay Commission:  What Central Government Employees Need to Know

The tenure of the 8th Pay Commission is expected to be around 18 months. Former Supreme Court judge Justice Ranjana Prakash Desai has been appointed as the chairperson. Professor Pulak Ghosh is serving as a part-time member, while Pankaj Jain has been named the member secretary.
The government has already finalized the Terms of Reference (ToR), which define the commission’s scope, objectives, and working process.

How the 8th Pay Commission Will Work?

During its review, the commission will hold consultations with various central government ministries and departments. It will also consider the demands raised by employee unions and staff associations.
At the same time, the commission will assess the financial condition of both the central and state governments to ensure that its recommendations are financially sustainable. After examining all these factors, the commission will submit its final report to the central government.

When Will the 8th Pay Commission Be Implemented?

Experts estimate that the commission will take at least 18 months to complete its work. After the report is submitted, the government may need another six months to implement the recommendations. This means the entire process, from review to implementation, could take nearly two years.

Fitment Factor: The Most Important Issue for Employees

The fitment factor is considered the most crucial element of the 8th Pay Commission, as it determines the overall salary hike.
Under the 7th Pay Commission, the minimum basic pay was increased from ₹7,000 to ₹18,000 using a fitment factor of 2.57. This time, employee unions are demanding a minimum fitment factor of 2.86.

Expected Salary Hike Under the 8th Pay Commission

If a 2.86 fitment factor is approved, estimates suggest that the minimum basic salary could rise from ₹18,000 to around ₹52,000. However, this figure is still speculative and will depend entirely on the commission’s final recommendations.

8th Pay Commission: Final Decision Still Awaited

The exact salary revision, pension increase, and fitment factor will only be clear once the 8th Pay Commission report is submitted and approved by the government. Until then, central government employees and pensioners continue to wait with high expectations for a favorable outcome.

Nisha Srivastava
Published by Nisha Srivastava