New Delhi: Central government employees and pensioners have long awaited the implementation of the 8th Pay Commission, and recent reports suggest that the wait may soon be over. According to credible sources, the Government of India could establish the 8th Pay Commission in April 2025, which means its formation may happen within this very month. The recommendations made by this commission are likely to be implemented in 2026 or 2027.
If implemented, the monthly salary of central government employees and the pensions of retired personnel are expected to witness a significant jump ranging from ₹14,000 to ₹19,000. Currently, the average monthly salary of a central employee is around ₹1 lakh. Based on this, if the government allocates a budget of ₹1.75 lakh crore, the average monthly salary could increase by approximately ₹14,600.
On the other hand, if the budget allocation reaches ₹2 lakh crore, employees could see an increase of up to ₹16,600 per month. This development would directly benefit over 50 lakh serving central government employees and around 65 lakh pensioners across the country.
Fitment Factor – The Key to the Hike
A crucial component of any pay revision under a pay commission is the fitment factor, which determines how the new salary structure will be calculated. During the 7th Pay Commission, the fitment factor was 2.57, leading to the minimum basic salary being revised from ₹7,000 to ₹18,000.
If the same formula is applied in the 8th Pay Commission, the minimum salary could go up to ₹46,260. Similarly, minimum pensions could rise from ₹9,000 to ₹23,130, marking a significant improvement in the financial conditions of retired employees.
Financial Implications and Government Decision
The final impact of the 8th Pay Commission on salaries and pensions will depend largely on the recommendations made by the commission and the financial decisions taken by the central government in its upcoming budgets. For reference, during the implementation of the 7th Pay Commission, the government spent ₹1.02 lakh crore.
While the move could place an additional burden on the exchequer, it is seen as a much-needed step to adjust salaries in line with inflation and growing living costs. If approved, it will provide relief to lakhs of families dependent on government service income and pensions.
The formation of the 8th Central Pay Commission could mark a turning point for government employees and pensioners. While the official announcement is awaited, expectations are high, and stakeholders are hopeful that the government will take a favorable decision soon.
