8th Pay Commission : 25-30 per cent Anticipated Salary and Pension Hike for Central Government Employees
Agartala, Jan 17, 2025, By Our Correspondent59
Industry experts predict a substantial increase in salaries and pensions for Central government employees with the implementation of the 8th Pay Commission. The proposed changes could lead to a salary hike of 25-30 percent, benefiting millions of employees and pensioners across India.
Historical Context and Future Projections
The last salary revision for Central government employees took effect on January 1, 2016, following the recommendations of the 7th Pay Commission. Given the decadal schedule for pay revisions, the next salary adjustment is expected from January 1, 2026. The 8th Pay Commission aims to address evolving economic conditions, ensuring that government salaries and pensions remain competitive and equitable.
Impact and Beneficiaries
The anticipated salary and pension hike will benefit approximately 50 lakh Central government employees, including defense personnel, and over 65 lakh pensioners. The move is seen as a crucial step in maintaining a fair compensation system and supporting the financial well-being of government employees.
Expert Insights
Neeti Sharma, CEO of TeamLease Digital, highlighted the potential changes, stating, "For the 8th Pay Commission, a fitment factor between 2.6 and 2.85 is speculated, potentially increasing salaries by 25-30 percent and pensions proportionately." This increase follows historical trends, where the 7th Pay Commission introduced a fitment factor of 2.57, resulting in an average salary hike of 23.55 percent and aligning pensions with the 'One Rank, One Pension' scheme. The 6th Pay Commission had applied a factor of 1.86.
Additional Benefits
The basic minimum salary is expected to rise beyond Rs 40,000, along with enhancements in perks, allowances, and performance pay. Sharma added, "Such revisions are crucial to counter inflation, rising living costs, and the widening gap between public and private sector remuneration. Beyond financial benefits, the revised pay scales will also enhance disposable incomes, stimulating consumption and contributing positively to the economy."
Government Commitment and Process
Periodic revisions reflect the government's commitment to a fair and equitable system that values its workforce and ensures they are financially empowered. The Cabinet approved the formation of the 8th Pay Commission, which will address the issue of increasing salaries for Central government employees and pension payments.
Commission Formation and Consultations
Since 1947, seven pay commissions have been formed. The 7th Pay Commission came into effect in 2016 and will conclude its tenure in 2026. By forming the 8th Pay Commission in 2025, the government aims to receive recommendations well before the 7th Pay Commission's period ends. The process will involve wide consultations with state governments, the Central government, public sector undertakings (PSUs), and various stakeholders. A chairman and two members will be appointed to the commission soon.
This proactive approach ensures ample time for thorough deliberation and the implementation of recommendations, thereby supporting the continuous improvement of employee compensation and maintaining the integrity of the public service system.