8th Pay Commission: Expected Salary Hike, Fitment Factor, Implementation Date And All Other Details

Although government had last year said there was no proposal for setting of 8th Pay Commission, however, with the Lok Sabha 2024 elections over, speculations are yet again gaining steam.

New Delhi: With the Modi government staking claims at the centre for the third time, a lot of speculations have also started yet again regarding the formation of the 8th Central Pay Commission that will impact the salary brackets of approximately 49 lakh government employees and 68 lakh pensioners.

Govt In July 2023 Said No Proposal For Formation Of 8th Central Pay Commission

Meanwhile, amidst a lot of ongoing speculations among the central government employees regarding the update on the 8th Central Pay Commission, Janata Dal Party's Ram Nath Thakur raised pertinent questions during the Rajya Sabha session on July 25, 2023. The focus of the inquiries was on matters concerning the pay and pension for Central employees.

Responding to the query, then Minister Of State For Finance Pankaj Chaudhary big update on the setting up of the 8th pay commission. The question was raised in the Rajya Sabha as the rate of DA/DR is projected to cross 50 percent or even more from January 2024, whether the Central Government proposed to set up Eighth Central Pay Commission or not. Chaudhary, responding to the question said that there is no such proposal is under consideration of the Government. 

8th Central Pay Commission Formation Gaining Traction After 2024 LS Elections

However, with the Lok Sabha Elections now over, the news around the formation of 8th Central Pay Commission is yet again gaining traction.

8th Pay Commission Expected Implementation Date

If the government decides to set up the 8th pay commission, it will require over a year or 18 months for its recommendations to be submitted. And once 8th Pay Commission recommendations are accepted by the government, it is most likely that it will be implemented by 2026, as per media reports.

8th Pay Commission Expected Pay Hike

Usually the recommendation of the pay commission over the salary hike of employees is based on fitment factor. Incase the 8th Pay Commission is set up for recommendations, it is most likely that the fitment factor will be set at 3.68 times. Now, considering  the minimum basic salary of government employees at Rs 18,000, they can expect a hike of Rs 8,000 to Rs 26,000 in their basic pay, if fitment factor of 3.68 times is placed upon.

7th Central Pay Commission Notified In 2016

Bringing huge relief for lakhs of Central Government employees, the implementation notification of the 7th Pay Commission was issued in July 2016, thereby paving the way for the employees to get the revised pay from their August salaries.

The Government after consideration decided to accept the recommendations of the Commission in respect of the categories of employees covered in its terms of reference of the Commission’s recommendations on Minimum Pay, Fitment Factor, Index of Rationalisation, Pay Matrices and general recommendations on pay without any material alteration with the following exceptions in Defence Pay Matrix in order to maintain parity in pay with Central Armed Police Forces.