8th Pay Commission: Central govt employees, pensioners await salary and pension hike details; here's what we know

8th Pay Commission: The anticipation among central government employees for the establishment of the 8th Pay Commission is mounting. With the 7th Pay Commission nearing the end of its tenure after almost nine years, there is growing excitement about the impending formation of the next pay commission.

The previous pay panel, the 7th Pay Commission, was instituted by the Manmohan Singh-led government back in February 2014, with its recommendations being implemented in January 2016. The 7th Pay Commission will complete its 10 years in January 2026.

The formation of a pay commission marks the initial step towards the review and adjustment of employees' basic salaries. Once established, the commission is required to engage with all relevant stakeholders and submit its findings to the government. In contrast to the prompt formation of the 7th Pay Commission, there has been a delay in setting up the 8th Pay Commission. Various media reports have suggested that the formation of the 8th Pay Commission is imminent, in line with the tradition of governments convening a Pay Commission at approximately a decade interval.

Fitment factor 

The salaries of central government employees are adjusted with the introduction of each Pay Commission through the application of a fitment factor. The fitment factor is the multiplier utilised to adjust the fundamental salaries and pensions of government employees and retirees. In the case of the 7th Pay Commission, salaries were updated with a fitment factor of 2.57. However, employee unions had requested a higher fitment factor of 3.67. 

Shiv Gopal Mishra, the secretary (staff side) of the National Council of Joint Consultative Machinery (JCM), told NDTV Profit that a fitment factor of at least 2.86 is expected for the 8th Pay Commission.

According to the given fitment factor, the minimum basic salary of a government employee would increase to Rs 51,480, surpassing the current minimum salary of Rs 18,000. Likewise, pensions would see a rise to Rs 25,740 from the current Rs 9,000, if the fitment factor is established at 2.86.

The 7th Pay Commission proposed a fitment factor of 2.57, resulting in an increase in the minimum salary of central government employees to Rs 17,990 from Rs 7,000. If the 8th Pay Commission recommends a fitment factor of 2.86, the minimum salary of employees will rise to Rs 51,451 from the current Rs 17,990.

When will the 8th Pay commission formed?

Earlier this month, the Staff Side of the National Council of the Joint Consultative Machinery (NC-JCM) reportedly met with Finance Secretary Tuhin Kanta Pandey to present demands and requests from central government employees for the prompt establishment of the 8th Pay Commission. The NC-JCM is the highest-ranking body in the JCM framework that addresses issues impacting central government employees. 

The NC-JCM had submitted two memorandums requesting the immediate formation of the 8th Central Pay Commission. The first memorandum was delivered to Rajiv Gauba, the Union Cabinet Secretary at the time, during the Union Budget presentation in July 2024. The second memorandum was submitted to Gauba's successor, T.V. Somanathan, who assumed the role of Cabinet Secretary on August 30.

Leading up to the Union Budget 2024-25, presented in Parliament on July 23, there were speculations in various media reports suggesting that the Centre could announce the establishment of the 8th Pay Commission. However, this proposal did not materialize.