8th Pay Commission India Salary Hike: The 8th Pay Commission, which will review and possibly alter the pay, benefits, and pensions of current and former workers of the Indian central government, has been officially launched by the ruling administration.
As reported by several media outlets, the government has reportedly withheld information on the exact percentage of pay increases to be announced by the newly established pay commission. According to Business Today, however, the minimum basic pay is now at ₹18,000 and people anticipate a rise to ₹51,480.
Expected Salary Hike
One of the most important factors in calculating the basic salary’s multiplication factor is the fitting factor. There has been talk of this factor potentially going up:
- In line with the recommendations of the 7th Pay Commission, the National Council-Joint Consultative Machinery (NC-JCM) has suggested a minimum fitment factor of 2.57. As a result of this modification, the minimal fundamental compensation could increase from ₹18,000 to ₹46,260 per month.
Fitment Factor Of 2.57: What Does It Mean For Central Govt Employees’ Salary?
Due to a fitment factor of 2.57%, the salaries of central government employees would increase by 157%, resulting in a monthly minimum wage hike from Rs 18,000 to Rs 46,260. The minimum pension would also increase from Rs 9,000 to Rs 23,130 per month. The 7th Pay Commission recommended the fitting factor of 2.57. Employees of the federal government saw a minimum wage increase of 157%, from Rs 7,000 to Rs 18,000.
The 8th Pay Commission had previously called for a fitment factor of 2.86. Demanding a fitting factor of 2.86 is “asking for the moon,” according to former finance secretary Subhash Garg, who spoke with a TV station. According to him, the fitting factor can be close to 1.92. The minimum wage for central government workers will rise from Rs 18,000 to Rs 34,560, a 92% increase, if the fitment factor of 1.92 is granted.
Why Is JCM-NC Seeking Fitment Factor Of 2.57 Or Higher?
If the 8th Pay Commission is going to recommend a fitment factor of 2.57 or higher, Mishra told NDTV Profit why. In 1957, at the 15th Indian Labour Conference (ILC), the fitment factor was established at 2.57 according to Dr. Aykroyd’s minimum living wage formula and the 7th Pay Commission’s decision. These metrics, according to Mishra, do not represent the demands of today’s workers and are hence out of date.
Who Will Benefit?
There will likely be a large number of people affected by the recommendations of the 8th Pay Commission:
- Central Government Employees: The new salary arrangements would be beneficial to almost 50 lakh government workers, including those in the military.
- Pensioners: Changes to the pensions of around 65 lakh people working for the central government, including those who have retired from the military, are anticipated.
Implementation Timeline
When the fiscal year 2025-26 begins in April 2025, the commission is expected to go to work. For fiscal year 2026-27, however, the Union Budget is expected to include the monetary effects of the new compensation systems.
A Look at Previous Pay Commissions
Looking at how previous pay commissions have progressed may help shed light on the 8th Pay Commission’s likely impact:
- 1st Pay Commission (1946): In 1946, the 1st Pay Commission introduced the idea of “living wages” and set the lowest income at ₹55 and the highest at ₹2,000.
- As of 2016, the 7th Pay Commission: More than 10 million workers, including retirees, will be benefited by setting the minimum wage at ₹18,000 and the highest at ₹2,500,000.
Conclusion
Central government personnel and pensioners should expect substantial changes to their remuneration arrangements from the 8th Pay Commission. The administration is committed to bringing public sector remuneration in line with modern economic realities, and although the precise numbers and percentages are still up in the air, the expected revisions demonstrate that commitment. To get the most up-to-date and accurate information, stakeholders should follow official channels for updates.