Will 8th Pay Commission Raise Central Govt Salaries to Rs 51480?

As the 7th Pay Commission approaches the end of its 10-year cycle in December 2025, anticipation for the 8th Pay Commission is mounting among central government employees and pensioners. The prospect of an updated fitment factor and a significant salary and pension hike is drawing attention nationwide. Approximately 1.2 crore central government staff and retirees closely monitor developments, eager for clarity on when the government might announce the 8th Pay Commission and what the proposed revisions entail.

Current Status and Timeline for 8th Pay Commission Formation

The Centre has yet to announce the formation of the 8th Pay Commission officially. Historically, Pay Commissions have been constituted every decade, setting expectations for the announcement to follow this pattern. If tradition holds, an official declaration regarding the formation could come after December 2025, coinciding with the end of the 7th Pay Commission’s term.

Expected Fitment Factor for the 8th Pay Commission

A crucial element of salary and pension hikes under any Pay Commission is the fitment factor. For the 7th Pay Commission, the fitment factor was set at 2.57, increasing the minimum basic salary of central government employees. However, employees’ unions, notably represented by Shiv Gopal Mishra, Secretary (Staff Side) of the National Council of Joint Consultative Machinery (NC-JCM), have advocated for a higher fitment factor.

Mishra suggests a fitment factor of at least 2.86' for the 8th Pay Commission. If implemented, this increase would mean that the minimum salary would rise from the current Rs 18,000 to Rs 51,480. Correspondingly, the minimum pension would be elevated from Rs 9,000 to Rs 25,740.

Calculating the Proposed Salary Hike

The salary increase under the proposed fitment factor can be calculated by multiplying the current minimum salary with the new factor:

• Current minimum basic salary: Rs 18,000
• Proposed fitment factor: 2.86
• New minimum salary: Rs 18,000 × 2.86 = Rs 51,480

Similarly, for pensions:

• Current minimum pension: Rs 9,000
• Proposed new pension: Rs 9,000 × 2.86 = Rs 25,740

Significance of the Fitment Factor

The proposed fitment factor of 2.86 is seen as reasonable by employee unions, considering the once-in-a-decade nature of Pay Commission revisions. This figure aligns with inflation trends and cost-of-living adjustments that have impacted government staff over the past years. During a recent meeting between the NC-JCM Staff Side and Union Finance Secretary Tuhin Kanta Pandey, this demand was reiterated, emphasizing the necessity of a substantial increase for employee welfare and economic stability.

NC-JCM’s Advocacy Efforts

The NC-JCM, as the apex body under the JCM scheme, has been proactive in pushing for the formation of the 8th Pay Commission. It submitted two key memorandums to the government:

1. First Memorandum: Submitted during the Union Budget session in July 2024 to then Cabinet Secretary Rajiv Gauba, urging prompt action.
2. Second Memorandum: Presented to T.V. Somanathan, Gauba’s successor, in August 2024, reinforcing the demand for the 8th Pay Commission’s early constitution.

These memorandums highlighted employees’ rising financial concerns and the need for timely revisions to avoid prolonged economic disparity.

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