8th Pay Commission: The central government has officially approved the creation of the 8th Pay Commission. After a cabinet meeting chaired by Narendra Modi on Thursday, Ashwini Vaishnav revealed that this new commission will address the needs of central government employees and pensioners. The establishment of the 8th Pay Commission is expected to benefit around 48.67 lakh central employees and 67.95 lakh pensioners. Currently, the Seventh Pay Commission is operational, with its term extending until December 31, 2025.
A new Pay Commission in every ten years
Typically, the Central Government launches a new Pay Commission every ten years to revise employee salaries. The 7th Pay Commission was introduced in 2016, and the government has tasked the 8th Pay Commission with submitting its report by 2026, with implementation likely to follow in the same year.
When will the new pay commission be in effect?
The Union Minister mentioned that the commission is anticipated to deliver its findings by 2026. As for the next steps, following the Union Cabinet’s endorsement, discussions will be held with state governments and public sector enterprises. Furthermore, the chairman and two members of the 8th Pay Commission will be appointed shortly. Once all procedures are completed, the commission will present its report to the government for review and possible implementation.
If the fitment factor is increased, it could rise from 2.57 to 2.86, leading to a substantial enhancement in employees’ basic salaries. Should the fitment factor be adjusted to 2.86, the current minimum basic salary could jump from Rs 18,000 to Rs 51,480. At the same time, pensioners might see their monthly pensions increase from Rs 9,000 to a minimum of Rs 25,740.
The previous implementation of the 7th Pay Commission resulted in an increase in the fitment factor to 2.57, which raised the minimum basic salary from Rs 7,000 to Rs 18,000.