8th Pay Commission: On the one hand, the Modi government at the central has provided employees and pensioners a 3% dearness allowance after implementing the Unified Pension Scheme, which increased DA from 50 to 53 percent. The next DA will increase in 2025. On the other hand, debate on the new pay commission began before 2025. Because the central government typically establishes a new pay panel every ten years to modify the compensation of government employees.
It is expected that the Modi government would make a significant decision on the 8th Pay Commission in 2025. If the recommendations of the 8th Pay Commission are followed, the minimum wage of central employees can be increased from ₹ 18,000 to ₹ 34,560, and the minimum pension of retirees can be ₹ 17,280. Meanwhile, the Joint Consultative Machinery (JCM) has agreed to meet with employee organizations in November; the 8th Pay Commission is scheduled to be considered at this meeting.
8th Pay Commission : Every 10 years, a new pay commission is implemented
Until date, a new pay commission has been constituted every ten years. The 7th Pay Commission was established in February 2014, but its recommendations were implemented on January 1, 2016, and will expire on December 31, 2025; on this premise, the 8th Pay Commission will be implemented in January 2026, therefore the debate has heated up. According to media reports, the central government can make a decision on the 8th Pay Commission in the budget for 2025. The basic salary can be increased from 18000 to 34000 after the new pay commission is implemented.
8th Pay Commission : This is why the clamor for a new pay commission is increasing
It is worth noting that the Pay Commission is a special body established by the Government of India. The commission’s primary goal is to assess the salaries, allowances, and pensions of central employees and pensioners and make appropriate changes. The new Pay Commission revises the income and pension of government employees based on many economic indicators, including inflation. Until date, the Central Government has formed a new Pay Commission every ten years; the next Pay Commission is set to be implemented in 2026.
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During the February budget session, various employee organizations, including the Employees Federation, National Council of Joint Advisory Machinery, and Indian Railway Technical Supervisor Association, wrote to the Central Government demanding that the 8th Pay Commission be implemented. The Employees Forum also handed a memorandum on the Pay Commission to Union Cabinet Secretary TV Somanathan.
Rajya Sabha MPs Ramjilal Suman and Javed Ali Khan recently questioned this during the monsoon session. On this, Minister of State for Finance Pankaj Chaudhary stated that there is currently no proposal before the Central Government for the consideration of the 8th Finance Commission, and that the government has only received two representations, therefore there is no notion of forming it.
The adoption of the 8th Pay Commission may result in a 92% rise in the minimum pay for government employees (₹ 18,000 to ₹ 34,560) and a corresponding increase in the minimum pension for retirees (₹ 17,280).
Additionally, the fitting factor will increase from 2.57 to 3.68. This may result in an increase in staff salaries from ₹20,000 to ₹25,000. Currently, the fitment factor is 2.57 times, and the basic income is Rs 18,000. It is thought that the fitting factor has grown from 2.57 percent to 3.00 percent, or 3.68 percent.
Previously, the Central Government enhanced the fitment factor in 2016, and the 7th pay commission was also adopted this year. This will help roughly 48.62 lakh employees and 67.85 lakh pensioners.
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