8th Pay Commission latest Update: The 8th Pay Commission for central government employees and pensioners will submit its report within 18 months. The government has appointed the chairman and members of the 8th Pay Commission. This commission will work on changes to the pay structure, fitment factor, and allowances for central government employees. According to reports, dearness allowance (DA) may be reduced to zero under the 8th Pay Commission. Currently, central government employees receive 58% DA of their basic salary.

Changes in allowances in the 8th Pay Commission

The 8th Pay Commission will have the biggest impact on dearness allowance (DA). Reports suggest that DA may be zero under the 8th Pay Commission. It is expected that upon implementation of the new Pay Commission’s recommendations, the existing DA will be merged with the basic salary. After this, DA calculations will start from zero. The government currently increases DA twice a year, and this trend will continue. Currently, the government increases DA by an average of 7 to 8% annually.

When will the new pay commission be implemented?

The 8th Pay Commission has been asked to submit its report within 18 months. This means that the new pay commission is expected to be implemented by early 2027. According to experts, dearness allowance will be reduced to zero under the 8th Pay Commission.

What is the fitment factor?

The fitment factor is the multiplier used to multiply the basic pay of the previous pay commission to obtain the new basic pay. For example, in the 7th Pay Commission, the fitment factor was set at 2.57. This means that if an employee’s basic pay was ₹35,000, the new basic pay would be ₹35,000 × 2.57 = ₹89,950. Now, in the 8th Pay Commission, this fitment factor is expected to be between 2.0 and 2.5.

How will salary be calculated?

The new salary structure is determined by multiplying the fitment factor by the basic pay of the previous Pay Commission. For example, if an employee’s basic pay is ₹35,000 and the new fitment factor is 2.11, the new basic pay will be ₹35,000 × 2.11 = ₹73,850.

What will be the salary if a 2.0 fitment factor is applied?

If an employee’s current basic pay is ₹50,000 and the new fitment factor is 2.0, the new salary will be ₹50,000 × 2.0 = ₹100,000. Allowances such as house rent allowance and dearness allowance will also be added to this. Additionally, allowances such as HRA (House Rent Allowance) and DA (Dearness Allowance) also increase based on the basic pay. It should be noted that there are 18 pay levels for central government employees.

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What was the question

The Finance Ministry under the Central Government said that there is no plan to merge DA with the basic salary. Minister of State for Finance Pankaj Chaudhary said that no such proposal is under consideration. Actually, Rajya Sabha member Javed Ali Khan had asked a question about this. The question was whether the government is considering merging 50% DA with the basic salary before the report of the 8th Pay Commission is prepared. In response to this, Pankaj Chaudhary said that no such proposal is under consideration.

When will the recommendations be implemented

Let us tell you that the government has not yet formally constituted the 8th commission. It is expected to be done by next month (April 2025). The recommendations of the 8th commission will be implemented after the end of the 7th Pay Commission in 2026. About 50 lakh central employees will benefit from the recommendations of the new pay commission. It is worth noting that the 7th Pay Commission was constituted in 2014 and its recommendations were implemented from January 1, 2016. Its term is ending in 2026.

10 years in the making

Usually, every 10 years the Central Government constitutes a Pay Commission to revise the salaries of its employees. Seven Pay Commissions have been constituted since 1947. The Pay Commission also recommends the formula for revision of Dearness Allowance and Dearness Relief for the purpose of compensating Central Government employees and pensioners for inflation. State governments also revise the salaries of their employees on the lines of the Central Pay Commission.

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There is good news for government employees. The central government has received a proposal to form the Eighth Pay Commission before the full budget of 2024. The proposal of the 8th Pay Commission has been sent to the Modi government. So that the Pay Commission can review the basic salary, allowances, pension and other benefits for central government employees and pensioners. The budget will be presented at the end of July. In such a situation, it is expected that the government can talk about the proposal of the 8th Pay Commission in the budget.

Modi government received the proposal of 8th Pay Commission

Shiv Gopal Mishra, Secretary, National Council of Employees’ Side, Joint Consultative Machinery for Central Government Employees, has written a letter to the Cabinet Secretary, urging the government to give priority to the formation of the 8th Pay Commission. A Central Pay Commission is constituted every 10 years. It examines the existing salary structure, allowances and benefits of central government employees, suggests necessary changes based on factors such as inflation.

Government will constitute 8th pay commission

The 7th Pay Commission was introduced by former Prime Minister Manmohan Singh on 28 February 2014. Its recommendations came into effect from 1 January 2016. This will be the first time a new pay commission will be constituted during the tenure of the Modi government. As per the usual ten-year interval, the 8th Central Pay Commission is proposed to begin from 1 January 2026. However, the government has not yet announced its formal formation.

Also Read: Employees Salary Hike: Govt announced to increase the salary of these employees – see details

Hopes tied to return for the third time

With the Lok Sabha elections 2024 over and Prime Minister Narendra Modi returning for the third consecutive term, over 1 crore central government employees are waiting for an update on the 8th Central Pay Commission. Mishra said that while inflation was around 4% to 7% earlier, it has increased to an average of 5.5% after Covid. Mishra said that post-Covid inflation is higher than pre-Covid levels. If we compare the retail prices of essential commodities and items needed for daily life from 2016 to 2023, they have increased by more than 80% according to the local market. Only about 46% of dearness allowance was given till 1/7/2023. It is currently at 50 percent.

Will this be the salary structure?

Mishra has recommended periodic review of the pay matrix instead of waiting for a decade. Now there is a need to change the pay commission in view of inflation. Mishra highlighted that while DA for government employees and pensioners reached 50% from January 1, 2024, no decision has been taken to restore pension under CCS (Pension) Rules, 1972 (now 2021) for those recruited after January 1, 2004. The salary structure of the 8th Pay Commission is also to be discussed.

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DA has been increased twice every year except during the Corona period. The increase in DA will greatly benefit the employees. This will increase the salary coming to their hands. Employees have been waiting for their DA increase for a long time.

The central government has been increasing the dearness allowance of the employees every year. DA has been increased twice every year except during the Corona period. The increase in DA will greatly benefit the employees. This will increase the salary coming to their hands. Employees have been waiting for their DA increase for a long time. The Modi government may soon increase the DA of the employees. Along with this, an update has also come from the government for the Eighth Pay Commission.

Government can increase DA by 4 percent

The government can increase DA by 4 percent. If this happens then DA can reach 46 percent. At present the DA is 42 per cent. That is, after January next year, dearness allowance or DR will reach 50 per cent. By next year, DA may reach 50 per cent. If this happens, will the Central Government bring the 8th Pay Commission. The central government has recently reacted to this issue.

Will the government bring the eighth pay commission?

The Central Government has recently responded to the issue of setting up of the 8th Pay Commission. An important announcement was made in this regard in the Lok Sabha. The Finance Ministry has made it clear that at present they do not have any proposal regardin the formation of the 8th Pay Commission. Union Minister of State for Finance Pankaj Chaudhary disclosed this. He gave this information in a written reply to a question.

Now dearness allowance is 42 percent

The dearness allowance is currently 42 per cent. This is applicable for the period from January to June 2023. Also, the government will increase DA for the period from July to December. This time also the government can increase the DA by 4 percent. If this happens then DA will reach 46 per cent. Also, next year DA can reach 50 percent. The Center has largely cleared the 8th Pay Commission issue.

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Along with this, pensioners are also going to get huge benefits. A big update has been issued by the government regarding the 8th Pay Commission. If you are also waiting for the implementation of the Eighth Pay Commission, then good news has come for you.

Eighth Pay Commission will be formed

The government is soon going to set up the Eighth Pay Commission. It is believed that next year the salary of central employees can increase by more than 44 percent. Along with this, salary should be reviewed on any other formula other than the Fitment Factor. At the same time, a lot of changes can be seen in this pay commission as compared to the old commission.

There will be a bumper increase in salary

Let us tell you that the fitment factor in the Seventh Pay Commission was 2.57 times, after which the salary of the employees increased by 14.29 percent and due to this increase, the minimum salary of the employees was fixed at Rs 18,000. At the same time, under the Eighth Pay Commission, it is believed that this time the fitment factor may be 3.68 times, after which the salary of the employees may increase by 44.44 percent. At the same time, the minimum salary of the employees can directly increase from Rs 18,000 to Rs 26,000.

Salary may increase by Rs 26,000.

If the government sets up the Eighth Pay Commission on the same old scale, then the fitment factor will be kept on the basis of it. On this basis, the fitment of the employees can be done 3.68 times. On this basis, there can be an increase of 44.44 percent in the minimum salary of the employees. With this, the minimum salary of the employees can be Rs 26000.

When can the government implement the 8th Pay Commission?

At present, no proposal of any kind has been presented by the Central Government regarding the Eighth Pay Commission. On the other hand, if sources are to be believed, the government can introduce the Eighth Pay Commission in the year 2024 and it can be implemented in the year 2026. Let us tell you that to implement this, the Pay Commission can also be formed in the year 2024. At the same time, experts are assuming that general elections are to be held in the country, so the government can give a big gift to the employees soon.

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In such a situation, it is being speculated that the Modi government can also give green signal to the formation of the Eighth Pay Commission. The 8th Pay Commission is to be constituted in 2023 itself. The Pay Commission was constituted only in 2013 when the recommendations of the Seventh Pay Commission were implemented in 2016. The recommendations of the new Pay Commission are implemented after every 10 years.

Last year in August 2022, when the question was asked to the Finance Minister whether the Modi government would also give a green signal to the formation of the Eighth Pay Commission. The Pay Commission is to be constituted in 2023 itself. Then, while answering this question, Minister of State for Finance Pankaj Chaudhary had said that there is no proposal before the government to set up the 8th Pay Commission.

The Minister of State for Finance had given this answer in writing to the question asked during the Question Hour. Although it is not that easy either. Because the National Pension System, about which the Modi government was not getting confused, during the passage of the Finance Bill in the Lok Sabha, Finance Minister Nirmala Sitharaman announced that it has been decided to further improve the National Pension System for government employees.

And for that they have decided to form a committee under the chairmanship of the Finance Secretary. This decision of the Finance Minister was surprising.

The Lok Sabha elections to be held in 2024 are just a year away and the vote of the government employees is very important for the ruling party, in such a situation, a committee has also been formed to improve the National Pension System.

In such a situation, it is believed that the Modi government can also give a green signal to the formation of the Eighth Pay Commission. Before the Lok Sabha elections, the government cannot buy the displeasure of the government employees by not constituting the Pay Commission. Opposition parties can make it a big election issue like NPS.

There was already a tussle between the Center and the states ruled by the opposition parties regarding the National Pension Scheme. The old pension scheme was reinstated in Congress ruled states like Himachal Pradesh, Rajasthan, Chhattisgarh. After which the government has constituted a committee to review the NPS. That’s why it is being speculated that the government can also constitute the Eighth Pay Commission.

Let us tell you that since 1947 many Pay Commissions have been formed. The government constitutes a new pay commission every 10 years. On the basis of whose recommendations the salary of central employees and pension of pensioners are increased. The Seventh Pay Commission was constituted by the UPA government on 24 February 2014. In 2006 and 2016, the Sixth and Seventh Pay Commission had recommended a big hike in the salaries of central employees and the governments, accepting it, also increased the salaries of government employees.

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At the same time, a pay commission is constituted every 10 years in the country to change the salary structure of central employees. This pay commission gives recommendations to make the salary of the employees in line with the current environment. On the basis of this, first the central and then the state governments restructure their salaries.

7 pay commissions have been constituted in the country so far. The first pay commission in the country was formed in January 1946. At the same time, the last i.e. Seventh Pay Commission was constituted on February 28, 2014. In such a situation, it has been 8 years since the 7th Pay Commission, so the atmosphere of discussion about the 8th Pay Commission has become heated in the employees’ organizations. If this happens, then 68 lakh central government employees and 52 lakh pensioners will get its direct benefit.

Government has refused for the time being , when the Central Pay Commission will be constituted, questions are being asked from the government on behalf of the employees’ organizations. However, during the monsoon session, the government has made it clear that at present, it does not have any proposal under consideration to make the eighth pay commission. Minister of State for Finance Pankaj Choudhary said in Parliament on Monday that at present there is no idea on the 8th Pay Commission.

How much can the salary increase , even though the government has refused the Pay Commission for the time being, but there is a flurry among the employee organizations about it. Organizations say that at present the minimum wage limit has been kept at Rs 18,000.

In this, the fitment factor in increment is 2.57 times, although the 7th Pay Commission recommends keeping it to 3.68 times. If the recommendation is accepted, then the minimum salary of central employees will increase from Rs 18 thousand to Rs 26 thousand.

Will Pay Commission be abolished?

It is also being heard that after the 7th Pay Commission, its tradition will end. That is, after this 8th or any other new pay commission will not come. Instead, the government can implement an automatic increment system. In this, the salary increase of government employees will be done automatically. It can be like increment in private jobs. In this, if the DA is more than 50 percent, there will be automatic revision in the salary.

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At the same time, a pay commission is constituted every 10 years in the country to change the salary structure of central employees. This pay commission gives recommendations to make the salary of the employees in line with the current environment. On the basis of this, first the central and then the state governments restructure their salaries.

7 pay commissions have been constituted in the country so far. The first pay commission in the country was formed in January 1946. At the same time, the last i.e. Seventh Pay Commission was constituted on February 28, 2014. In such a situation, it has been 8 years since the 7th Pay Commission, so the atmosphere of discussion about the 8th Pay Commission has become heated in the employees’ organizations. If this happens, then 68 lakh central government employees and 52 lakh pensioners will get its direct benefit.

Government has refused for the time being , when the Central Pay Commission will be constituted, questions are being asked from the government on behalf of the employees’ organizations. However, during the monsoon session, the government has made it clear that at present, it does not have any proposal under consideration to make the eighth pay commission. Minister of State for Finance Pankaj Choudhary said in Parliament on Monday that at present there is no idea on the 8th Pay Commission.

How much can the salary increase , even though the government has refused the Pay Commission for the time being, but there is a flurry among the employee organizations about it. Organizations say that at present the minimum wage limit has been kept at Rs 18,000.

In this, the fitment factor in increment is 2.57 times, although the 7th Pay Commission recommends keeping it to 3.68 times. If the recommendation is accepted, then the minimum salary of central employees will increase from Rs 18 thousand to Rs 26 thousand.

Will Pay Commission be abolished?

It is also being heard that after the 7th Pay Commission, its tradition will end. That is, after this 8th or any other new pay commission will not come. Instead, the government can implement an automatic increment system. In this, the salary increase of government employees will be done automatically. It can be like increment in private jobs. In this, if the DA is more than 50 percent, there will be automatic revision in the salary.

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