8th Pay Commission: Expected Salary Hike for Central Employees
The announcement follows several months after central government employees’ dearness allowance (DA) exceeded 50% of their basic salary.
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the establishment of the 8th Pay Commission on January 16, 2025. Announced just days before the Delhi Assembly elections, this decision aims to enhance the income of public sector employees.
On X (formerly Twitter), Prime Minister Modi expressed the government’s commitment to its workforce: “We take pride in the efforts of all government employees who contribute to building a Viksit Bharat. The Cabinet’s approval of the 8th Pay Commission will enhance quality of life and stimulate consumption.
The announcement comes several months after central government employees’ dearness allowance (DA) surpassed 50% of their basic salary. As of July 1, 2024, central government employees and pensioners have received 53% of their basic pay as DA/relief, with the next adjustment scheduled for January 2025.
Expectations from the 8th Pay Commission
The current salary structure is based on the recommendations of the 7th Pay Commission, which was implemented on January 1, 2016. With the establishment of the 8th Pay Commission, a revision of this structure is anticipated.
Although the exact percentage of the salary hike has not yet been revealed, reports indicate that the fitment factor, a crucial multiplier for calculating salaries and pensions, may increase from 2.57 to 2.86. If this adjustment takes place, the minimum basic salary for government employees could see a substantial rise, going from₹18,000 to₹51,480.
Understanding the Fitment Factor
The fitment factor plays a key role in determining the revised salaries and pensions of central government employees. It acts as a multiplier to adjust the pay scale in line with the recommendations of a new pay commission.
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Under the 7th Pay Commission, the fitment factor was set at 2.57, resulting in an increase in the minimum basic salary for central government employees from ₹7,000 under the 6th Pay Commission to ₹18,000. This basic salary does not include additional perks, allowances, or performance-based pay. When allowances like dearness allowance (DA), house rent allowance (HRA), and transport allowance (TA) were added, the total minimum monthly salary increased to ₹36,020 under the 7th Pay Commission.
With the 8th Pay Commission’s upcoming recommendations, changes to various allowances are anticipated. These revisions are expected to significantly boost the overall earnings of central government employees.
