The central government approved the 8th Central Pay Commission in January 2025, but the official notification is yet to be issued. The government has not yet finalised the names of the members and chairman of the new pay commission. Meanwhile, Minister of State for Finance Pankaj Choudhary told the Rajya Sabha that the official notification regarding the 8th Central Pay Commission will be issued soon in due course. He was responding to a question raised by Samajwadi Party MP Javed Ali Khan.

What is the detail

Responding to a question asked in the Rajya Sabha on Tuesday, August 12, Minister of State for Finance Pankaj Chaudhary said that letters were sent to the Ministry of Defense, Ministry of Home Affairs, Department of Personnel and Training (DoPT) and all the states on January 17 and February 17, 2025 to give inputs on the Terms of Reference. He further said, ‘Inputs are still being received. So the official notification will be issued at the appropriate time.’ The chairman and members of the 8th Pay Commission will be appointed after the notification of the 8th Pay Commission is issued by the government. On the question of the timeline for the formation of the commission, the Union Minister said that the notification will be issued ‘at the appropriate time’ and the appointments will be made after that.

Salary Hike under 8th Pay Commission

More than 1 crore central government employees and pensioners are eagerly waiting for the official notification of the 8th Pay Commission. According to media reports, the government may approve the fitment factor between 1.8 to 2.86. The fitment factor will decide the salary/pension hike of central government employees and pensioners. Under the 7th Pay Commission, central government employees get a minimum basic salary of Rs 18,000, while pensioners get a minimum basic pension of Rs 9,000. Apart from this, they also get DA/DR at the rate of 55 per cent under the Seventh Pay Commission.

New Potential Salary

At a fitment factor of 1.8 –

New minimum basic pay for employees – Rs 32,400

New minimum basic pension for pensioners – Rs 16,200

At a fitment factor of 2.86 –
New minimum basic pay for employees – Rs 51,480

New minimum basic pension for pensioners – Rs 25,740

However, DA/DR will be made zero after the implementation of 8th Pay Commission.

Confederation demonstration on August 20

Let us tell you that according to a media report, the Confederation of Central Government Employees and Workers has said in a letter written to the Cabinet Secretary that the employees of all the organizations associated with the Confederation will protest on August 20 at lunch time. They will protest on 2 issues.

The first demand is the delay in the formation of the Eighth Pay Commission and second, there is uncertainty in the minds of ‘pensioners’ regarding the Finance Bill.

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While the Modi government announced the 8th Pay Commission on January 16, the committee has not been appointed yet. Recently, the Rajya Sabha finally gave clarity on when the appointment of the chairman and members of the 8th Pay Commission will be announced.

The 7th Pay Commission will complete ten years on December 31 this year. The tenure of the new Pay Commission is scheduled to begin from January 1, 2026. However, the Center is delaying the appointment of the chairman and members, as well as finalizing the terms of reference (ToR).

More than one crore employees and pensioners have been waiting for many days for the Central Government to notify the ToR. If the ToR is notified, the way will be paved for recommendations to revise the salaries and pensions of the staff.

The National Joint Consultative Mechanism (Staff Side)- NC JCM, representing central government employees and pensioners, has already submitted its demands to the Union Cabinet Secretary after the government sought recommendations in January.

In this context, MP Sagarika Ghosh asked the government in the Rajya Sabha about the date of issuing the official notification approving the formation of the 8th Central Pay Commission. Minister of State for Finance Pankaj Chaudhary, in response to this question, said that the appointment of members will be done only after the official notification of the commission is released.

He said that suggestions and recommendations have already been sought from the Ministry of Defence, Ministry of Home Affairs, Department of Personnel and Training and State Governments. He said that the Commission will submit its recommendations within the time limit stipulated in the Terms of Reference (ToR).

He said that the government has received inputs from various quarters and will issue an official notification at the right time. The response from the government regarding the new pay commission has revived hopes among the employees.

While the 7th Pay Commission is due to conclude in another five months, experts estimate that the new commission’s recommendations will be implemented in mid-2027 or early 2028.

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A recent report by Ambit Capital has strengthened the speculation that there could be a huge hike of around 30 to 34 percent in the salaries of government employees. If the Eighth Pay Commission is implemented as per earlier estimates, it could be implemented in 2026 or financial year 2027. After this, the government will have an additional burden of around Rs 1.8 lakh crore.

Pay Commission after every 10 years…

The Central Government sets up a Pay Commission every ten years. In this, the existing pay structure of central employees and pensioners, including defence personnel, is revised on the basis of inflation and other economic aspects. Experts are expecting that the Pay Commission will recommend an increase in DA in line with inflation in addition to the basic pay of central employees. Along with this, the pension will also be revised as per the new pay structure.

The fitment factor is applied for salary revision of government employees. If the Ambit Capital report is to be believed, then a fitment range of 1.83 to 2.46 can be applied to it. If this happens, the minimum salary will increase from Rs 32,940 to Rs 44,280. The fitment factor is what is multiplied by the existing basic salary for the new pay structure as per the new Pay Commission.

How much salary increase?

If the fitment factor of 2.46 is applied in the same way, then in this case, if someone’s salary is Rs 50 thousand, then his salary will increase to Rs 1.23 lakh. But if the fitment factor is 1.83, then his salary will increase to Rs 91,500.

It is believed that the implementation of the Eighth Pay Commission will be very beneficial not only for the government employees but also for the Indian economy. The reason for this is that when the salaries of the people increase, they will spend on consumption and this will accelerate the pace of growth.

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There is great news for government employees and pensioners. Earlier this year, the central government gave the green signal to the 8th Pay Commission, which can be implemented from January 1, 2026. This will bring a big change in the salary and pension of more than 1 crore central government employees and pensioners of the country.

How much will the salary and pension increase due to the 8th Pay Commission?
A huge increase in the salary and pension of government employees is expected from the 8th Pay Commission. In such a situation, government employees and pensioners want to know how much their salary and pension will increase. Let us know what changes are going to happen for government employees in the new pay commission. Along with this, we will also know why these changes are being considered special for central employees and pensioners.

Huge increase in basic salary and pension

The most important thing in this commission is regarding the Fitment Factor, with the help of which the new basic salary and pension (Salary and Pension Hike) are decided.

In the 7th Pay Commission, this factor was 2.57, but now it can be increased to 2.86. If this happens, the minimum basic salary of Rs 18,000 can increase to about Rs 51,480. At the same time, the pension can increase from Rs 9,000 to about Rs 25,740. In this way, a bumper increase can be seen in the salary and pension of government employees.

How much will the salary increase at different levels?

How much salary can be received at different pay levels in the 8th Pay Commission. Let’s understand in simple language:

• Level 3 (Grade Pay 2000): Basic salary around Rs 57,456, total salary Rs 74,845, in-hand salary after deductions around Rs 68,849
• Level 6 (Grade Pay 4200): Basic salary around Rs 93,708, Total salary Rs 1,19,798, Inhand salary around Rs 1,09,977
• Level 9 (Grade Pay 5400): Basic salary Rs 1,40,220, total salary Rs 1,81,073, in-hand around Rs 1,66,401
• Level 11 (Grade Pay 6600): Basic Rs 1,84,452, Total Salary Rs 2,35,920, Inhand Salary around Rs 2,16,825

There will be a change in allowance as well

Along with the increase in basic salary, allowances like House Rent Allowance (HRA) and Travel Allowance (TA) will also increase. This will depend on the location in which the employee is posted and how much he travels. For this reason, the total salary of two employees of the same grade can be different.

How much will the contribution increase in NPS and CGHS?

Currently, employees contribute 10% of their basic salary and DA in the National Pension System (NPS), while the government contributes 14%. With the increase in basic salary, this contribution will also increase.

The Central Government Health Scheme (CGHS) fees are also linked to the salary slab. In such a situation, with the increase in the basic salary, the monthly deduction of CGHS can also increase.

Why is this change special?

The 8th Pay Commission will not only increase the salary, but will also have an impact on all the expenses, facilities and financial planning of the employees. Especially in matters like retirement planning, home loan EMI, tax saving and insurance, this increased salary can give new relief to the people.

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But, now the question is arising that by when will it be formed, will it come into effect from January 1, 2026 or will it be delayed. Usually the Pay Commission is formed in two to three months after getting approval from the government, but this time there is a lot of delay. If it is implemented late, what will be the effect on the fitment factor? Let us understand all these aspects in detail.

Will there be a delay in the implementation of the 8th Pay Commission?

According to a report by ET, the implementation of the 8th Pay Commission may be delayed. Usually, a new pay commission is implemented every ten years, but the 8th Pay Commission is expected to take more time. If we look at the time of implementation of the old pay commission, the 7th Pay Commission was approved by the Manmohan Singh government in the year 2014, while it was implemented on 1 January 2016. During this time, the commission submitted its report to the government, approval was taken from the cabinet and then it was implemented.

When will the new pay commission be implemented

But, the 8th Pay Commission could not be formed till the first 6 months of the year 2025, nor the Terms of Reference (ToR) have been finalized. These will form the basis for revision of salary and pension and allowances of the employees. In such a situation, there is every possibility of delay in its implementation. At the same time, some media reports have said that the 8th Pay Commission may take time till the end of 2026 or the beginning of 2027.

How will the salary of the employees be decided?

Let us tell you that in the last 30 years, the pay commissions have amended their structure several times. Earlier there were more than 4000 pay scales, due to which a lot of problems were faced in salary calculation. But the 6th Pay Commission started the system of pay band and grade pay. After this, a pay matrix of 24 stages was created during the 7th Pay Commission. In this, each cell shows a different salary. At the time of the 7th Commission, 2.57 fitment factor was determined, on the basis of which there was a huge jump in the salary of employees and pension of pensioners. In such a situation, something similar is expected from the 8th Pay Commission.

How much can the fitment factor be decided?

The fitment factor means how many times the salary of the employees will increase. At the same time, the fitment factor for the new pay commission is expected to be around 3.0. If the pay commission decides the salary hike on this fitment factor, then there will be a huge increase in the salary of employees and pensioners.

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The government is expected to announce the names of the panel members next month. Since the term of the current 7th Pay Commission is going to end on December 31, 2025, the big question in the minds of employees is whether the government will be able to implement the new pay commission from January 2026 or not.

What is the pattern

Looking at past precedents, it is highly unlikely that the new pay commission recommendations will be implemented from January next year, as previous pay commissions have usually taken more than a year to finalise their reports. This time, due to the delay in the announcement of the pay commission compared to previous pay commissions, chances are high that the implementation of the recommendations will be seen only in the financial year 2026-27.

Now what did the government say?

Meanwhile, two MPs Kangana Ranaut of BJP and Sajda Ahmed of Trinamool Congress raised questions in the Lok Sabha about the formation of the 8th Pay Commission to revise the salaries and pensions of central government employees. Their question was whether the government has set any timeline for submitting the report of the 8th Pay Commission.

These MPs also asked about the progress made on the terms of reference for the pay commission. Responding to their questions, Union Finance Minister Nirmala Sitharaman said the timeline for submitting the report and the progress on the terms of reference “will be decided in due course”.

One question was about the estimated number of central government employees and pensioners at the 7th Pay Commission level who are likely to get benefits from the 8th Pay Commission, which will boost consumption and promote economic growth across the country, including Odisha. On this, the Finance Minister said that the estimated number of Central Government civilian employees and pensioners/family pensioners are 36.57 lakh (as on 01.03.2025) and 33.91 lakh (as on 31.12.2024) respectively. He said, “Defence personnel and pensioners will also get benefits”.

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Government employees and salary earners were demanding this for a long time. Let us know how much the implementation of this pay commission will affect the salaries of government employees. And by when can it be implemented.

What is the 8th Finance Commission?

This 8th Finance Commission will make changes in the pension, allowance and salary of the Central Government employees and pensioners. On one hand, the salary of the government employees will increase after the implementation of this pay commission, on the other hand, the dearness allowance will also be revised. Let us tell you, the Pay Commission advises the Central Government to revise the salary of government employees. This process is done every 10 years.

Minimum basic salary can be Rs 51480

The government has also not told how much percentage of salary will be increased. However, this is decided by the fitment factor. According to different reports, it can be increased from 2.57 to 2.86. If this happens, then according to the fitment factor of 2.86, the minimum basic salary can increase from Rs 18000 to Rs 51480.

What is the fitment factor?

The Pay Commission revises salaries, pensions and allowances through this fitment factor. This is the method by which the salary and pension of government employees are calculated. Factors like inflation, requirement of employees etc. are included in this.

50 lakh government employees can get the benefit of this pay commission. 60 lakh pensioners can also get its benefit. According to reports, this pay commission can be implemented on 1 January 2026.

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The salary of lakhs of central government employees can increase once again. Recently, the dearness allowance for central employees has increased by 50 percent. With DA being 50 percent, other allowances of the employees have also increased. Now it is the turn of formation of the new pay commission, which is already awaited and now the demand has started gaining momentum.

Recommendation for formation of 8th Pay Commission

According to an ET report, Shiv Gopal Mishra, Secretary of the National Council of Joint Consultative Machinery for Central Government Employees, has written a letter in this regard to the Cabinet Secretary of the Government of India. The letter recommends the formation of the Eighth Pay Commission as soon as possible, so that the basic pay, allowances, pension and other benefits of central government employees can be revised.

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A new commission comes every 10 years

While advocating the formation of the Eighth Pay Commission, Mishra has argued that more than 10 years have passed since the formation of the last Pay Commission. Generally, the next Pay Commission is formed every 10 years. There is also usually a gap of 10 years between the implementation of the recommendations of the new Pay Commission in place of the old Pay Commission. In such a situation, the formation of the Eighth Pay Commission has become necessary.

When was the last commission formed?

The 7th Pay Commission was constituted on 28 February 2014 during the tenure of former Prime Minister Manmohan Singh. The 7th Pay Commission submitted its recommendations to the Central Government in November 2015, about one and a half years later. After that, the recommendations of the 7th Pay Commission came into effect from 1 January 2016, which are still in force.

7th pay commission has completed 10 years

If we look at it this way, 10 years have passed since the formation of the previous Pay Commission in February this year. As per the gap of 10 years, the government has time till January 2026 to implement the recommendations of the new Pay Commission i.e. the 8th Pay Commission. This means that the government should constitute a new Finance Commission as soon as possible, so that its recommendations can come on time and keeping in mind the time limit of 10 years, the recommendations can be implemented from January 2026.

What is the work of Pay Commission?

The Pay Commission is formed to determine the salary of central government employees and pension of former employees. The Pay Commission prepares recommendations after considering inflation, earnings and many other factors. The Pay Commission also prepares the formula for determining Dearness Allowance (DA) for employees and Dearness Relief (DR) for pensioners and other allowances.

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Kolhan University of Jharkhand has received approval from the Higher Education Department for payment of the long seventh pay scale to the non-teaching staff who have been deprived for the last several years. Now non-teaching employees will be paid the seventh pay scale. The long standing problem has been solved for many years. Instructions have been given to pay all the non-teaching staff of the university soon.

Approval of seventh pay scale payment

In such a situation, an increase of Rs 5000 to Rs 8000 is being considered in his salary. However, the issue of non-teaching staff is still pending. During whose contribution the official process could not be completed. The case of 15 employees has not been settled yet. Soon the paperwork of the employees will be completed and they will be paid the seventh pay scale.

Let us tell you that many employees have been sent to court. The matter is still in the court for a long time, hence the Higher Education Department has rectified the matter related to the seventh pay scale. Instructions have been sent to the university to implement the pay scale with all the non-teaching staff, but it was not approved by the education department. Now after getting approval from their education department, the salaries of the staff will be paid soon.

A huge amount will be provided to them as arrears. Non-teaching staff whose arrears have been pending for a long time. Instructions have also been given to make its payment soon. There are many such non-teaching staff also. Those who have passed away, while there are many non-teaching staff who have retired. They will also be given the benefit of seventh pay scale along with promotion. Let us tell you that due to the promotion not happening on time, his pay scale was stopped.

The seventh pay scale was implemented by the Central Government in 2016 but the non-teaching staff were being given the benefit of the fifth pay scale in 2016 also. In such a situation, smaller pay scale has been implemented for them. Then the seventh pay scale has been implemented. Employees have passed away during this lengthy process. In such a situation, their dependents will also be paid now.

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The Modi government has announced the constitution of a four-member committee under the chairmanship of the Finance Secretary to improve the National Pension System. 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, she has 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, had also increased the salaries of government employees.

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The kind of discussions that are going on in the country regarding the National Pension System, meanwhile, speculations are being made that the government may soon implement the Eighth Pay Commission across the country. Modi Government can soon give green signal to the 8th Pay Commission. Eighth Pay Commission is to be constituted in this year i.e. 2023 itself.

The recommendations of the new pay commission are applicable after 10 years.

Let us tell you that the 7th Pay Commission was formed in the year 2013 and it was implemented in the year 2016, after which there was a huge increase in the salary of the central employees. Now once again the government employees are going to have fun. Let us tell you that the recommendations of the new pay commission are implemented after every 10 years.

Good news can be received before the Lok Sabha elections, according to the information received from the sources, the Central Government may soon announce the 8th Pay Commission. Lok Sabha elections are to be held across the country next year, so before that the government is planning to give a big gift to the employees.

Now the minimum basic salary is Rs 18,000.

At present, the minimum salary of central employees ranges from Rs 18,000 to Rs 56,900 per month. After the implementation of the new pay commission, the minimum salary of the employees will increase. Along with this, the fitment factor in the Pay Commission report may also increase.

The union will talk to the government

It is being told by the Central Employees Union that the union will soon talk to the government regarding the demand for the 8th Pay Commission. At the same time, a memorandum will also be submitted to the government for this. If the government refuses to accept the demands, the union may consider an agitation, in which central employees as well as ex-pensioners may participate.

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