As discussions around the 8th Pay Commission intensify, government employees and pensioners may anticipate a significant increase in salaries and pensions if recommendations are implemented. Estimates suggest that the minimum wage could rise from ₹18,000 to ₹34,560, while the minimum pension might increase from ₹9,000 to ₹17,280. Additionally, there could be a rise in the fitment factor, further boosting salaries.
Pay Commission Timeline and Budget Considerations
The 8th Pay Commission is expected to be implemented by January 2026, following the 10-year cycle traditionally observed by the central government. The 7th Pay Commission, constituted in February 2014, took effect on January 1, 2016, and will end on December 31, 2025. A decision on the 8th Pay Commission could potentially be announced in the 2025 Budget.
Projected Salary and Pension Increases
If the 8th Pay Commission recommendations are enacted, the minimum salary for central government employees may increase from ₹18,000 to ₹34,560, while pensioners’ minimum pension could reach ₹17,280. The fitment factor, currently at 2.57, may rise to between 3.00 and 3.68, leading to an estimated 15-20% overall salary increase, including allowances.
Impact of Fitment Factor Adjustment
A proposed adjustment to the fitment factor could lead to salary increments for employees. The fitment factor, which was last increased in 2016 along with the implementation of the 7th Pay Commission, may rise from 2.57 to up to 3.68. This change would directly benefit around 48.62 lakh employees and 67.85 lakh pensioners, resulting in enhanced financial security for central government employees and retirees.
The Joint Advisory Body is expected to meet soon, during which trade unions will present their demands, and discussions will focus on refining service conditions for employees.
