The salaries of central government employees could see a significant hike of up to ₹19,000 per month if the 8th Pay Commission is implemented, according to a report by Goldman Sachs. The revision is expected to benefit nearly 50 lakh central government employees and 65 lakh pensioners across India.
What Is a Pay Commission?
A Pay Commission is a government-appointed body that periodically reviews and recommends salary, pension, and benefits revisions for central government employees and pensioners. Typically constituted every 10 years, it assesses economic conditions, inflation, and the rising cost of living before recommending salary adjustments.
Expected Salary Hike Under 8th Pay Commission
Currently, a mid-level central government employee earns an average pre-tax salary of ₹1 lakh per month. Depending on the budget allocation, the expected salary increases could be:
- ₹1.75 lakh crore allocation – Salary may rise to ₹1,14,600 per month.
- ₹2 lakh crore allocation – Salary may increase to ₹1,16,700 per month.
- ₹2.25 lakh crore allocation – Salary may grow to ₹1,18,800 per month.
When Will the 8th Pay Commission Take Effect?
There has been no official announcement regarding the formation of the 8th Pay Commission. However, experts predict that the government could constitute the panel in April 2025, with its recommendations potentially coming into effect by 2026 or 2027.
How Will It Differ from the 7th Pay Commission?
The 7th Pay Commission, implemented in 2016, had a financial impact of ₹1.02 lakh crore on the government and introduced salary and pension revisions retrospectively from January 2016.
One of the key changes was the fitment factor, which was increased by 2.57 times, raising the minimum basic salary from ₹7,000 to ₹18,000. If the 8th Pay Commission increases the fitment factor to 3 or higher, government employees can expect a substantial pay raise.
Employee Unions’ Demands vs. Expert Predictions
Once established, the 8th Pay Commission will hold consultations with employee unions and other stakeholders to determine the fitment factor and salary revisions. Unions are expected to push for a fitment factor similar to or higher than 2.57, in line with the 7th Pay Commission.
However, former Finance Secretary Subhash Chandra Garg has suggested that a higher fitment factor may not be feasible, predicting a more realistic estimate of 1.92.
With growing anticipation among government employees and pensioners, all eyes are now on the central government’s next move regarding the 8th Pay Commission and salary hikes.
