Union Minister Ashwini Vaishnaw said earlier this week that the 8th Pay Commission, which will review the salaries of Central government employees, has been approved by the Union Cabinet under Prime Minister Narendra Modi. The announcement is made just a few days before Budget 2025.
‘We are all proud of the efforts of all Government employees, who work to build a Viksit Bharat,’ Prime Minister Modi wrote on X (formerly Twitter) to express the government’s support for its workers. The Cabinet’s choice regarding the 8th Pay Commission will raise living standards and stimulate spending.
The pensions, benefits, and wages of central government employees and retirees will be updated by the 8th Pay Commission. Along with pay increases, the Dearness Allowance (DA) will be adjusted to reflect inflation as part of the 8th Pay Commission’s revisions.
Previously implemented 7th pay commission
The current pay structure was implemented on January 1, 2016, in accordance with the 7th Pay Commission’s recommendations. The structure will be revised with the establishment of the 8th Pay Commission.
What is the fitment factor?
The fitment factor, the primary multiplier used to calculate salaries and pensions, may increase from 2.57 to 2.86, according to reports, though the precise percentage of the pay increase has not been made public. This could result in a significant increase in the minimum basic salary for government employees, from Rs 18,000 to Rs 51,480.
About fitment factor
When determining the updated salary and pension amounts for central government employees, the fitment factor is a crucial component. It acts as a multiplication coefficient, modifying the pay scale to reflect the recommendations of the new commission.
Hike in 6th pay commission
The minimum basic salary for central government employees was raised from Rs 7,000 under the 6th Pay Commission to Rs 18,000 under the 7th Pay Commission due to the fitment factor of 2.57.
Benefits, allowances, and performance compensation are not included in the base pay. Under the 7th Pay Commission, the monthly minimum salary increased to Rs 36,020 when dearness allowance (DA), house rent allowance (HRA), transport allowance (TA), and other benefits are taken into account.
