8th Pay Commission latest news: The government is working on it fast and top officials of the Finance Ministry have indicated that after the Terms of Reference (TOR) of the 8th Pay Commission is approved by the Union Cabinet, the Commission can start its work from April 2025.
8th Pay Commission latest news: Discussions are in full swing regarding the 8th Pay Commission for central employees and pensioners. There were speculations about its formation for the last few days and now a big update has come out on this. The government is soon going to start the formal process for the 8th Pay Commission (8th CPC). According to sources, the pay commission can start its work from April 2025. After this, the new salary structure will be discussed regarding the increase in salary and pension of central govt employees.
When will the 8th Pay Commission be implemented?
Central employees have been waiting for a salary hike for a long time. If we look at the earlier pay commissions, a new commission comes every 10 years and the recommendations are implemented. The 7th Pay Commission came into effect from January 1, 2016, so the term of the new commission is likely to be effective from January 1, 2026.
The government is working fast on this and senior officials associated with the Finance Ministry have indicated that after the Terms of Reference (TOR) of the 8th Pay Commission is approved by the Union Cabinet, the commission can start its work from April 2025. After this, the commission will consider the salary hike formula and the fitment factor. But, it may take some time to be implemented, as it will take about 18 months to implement the recommendations.
When will the government make an official announcement?
As soon as the Terms of Reference (ToR) are approved, the members of the commission will be appointed and data collection will begin.
The commission can submit its recommendations to increase the salaries of pensioners and government employees by the end of 2025.
The government can make financial allocation for this commission in the Union Budget 2026.
The government can then implement it in the financial year 2026.
How much will the salary increase be?
The biggest issue in the 8th Pay Commission will be the Fitment Factor. If sources are to be believed, the Fitment Factor can be fixed at 1.90, then the salary of central employees can increase by 90% directly.
Possible salary calculation (based on Fitment 1.90)
| Minimum salary of 7th pay commission | Probable salary in 8th pay commission |
|---|---|
| ₹18,000 | ₹34,200 |
| ₹56,100 | ₹1,06,590 |
| ₹1,50,000 | ₹2,85,000 |
Note:
If the fitment factor
rises to 2.50
then the minimum wage can increase from ₹18,000 to ₹45,000.
How much benefit will pensioners get?
Currently, the minimum pension is ₹9,000, and the maximum is ₹1,25,000. If the 1.90 fitment is applied, the new pension can reach from ₹17,100 to ₹2,37,500.
Prospective Pension Calculation
| 7th Pay Commission Pension | Prospective Pension in 8th Pay Commission |
|---|---|
| ₹9,000 | ₹17,100 |
| ₹1,25,000 | ₹2,37,500 |
How many employees will benefit from the 8th Pay Commission?
– More than 50 lakh central employees will benefit from this pay commission.
– More than 65 lakh pensioners will also get the benefit of pension increase.
State governments also usually adopt the recommendations of the Central Pay Commission, which will also benefit state employees.
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