Centre will going to implement the new suggestions for 8th Pay commission on revising salaries and pensions of government employees from 1 January, 2026. The new Pay commission will be implemented after the completion of 10 years of previous commission.
As the 7th pay commission is close to the end, the center will set to announce the 8th pay commission. It will come with changes in employees’ salaries, pensions, and allowances given to them by the central government. Keep in mind that the Modi government has not currently announced the 8th pay commission or not announced the implementation date. It takes around 12-18 months to formulate the commission and add some changes to it. To announce the 8th pay commission, centers have taken many factors into consideration, like economic conditions, employees’ salaries, allowances, etc
8th pay commission Update- When is it due?
Central Pay Commission is constituted every 10 years to review and suggest revisions to salaries, benefits, and allowances for government employees. These suggestions factor in inflation and external variables. The 7th Pay Commission was formed by PM Manmohan Singh on 28 February 2014. It submits the report on 19 November 2015 and recommendations for the 7th pay commission effective from 1 January 2016.
After completing its 10 years, 8th pay commission will effective from 2026. Central government will soon announce the implementation date.
8th pay commission: What to Expect?
The government employees have decided from centers to increase the fitment factor from 2.57 to 3.68. fitment factor calculates the pensions and salaries of government employees. For example, 2.57 was a common fitment factor used to revise the 6th central pay commission to the 7th pay commission with some updates.
The fitment factor of 1.86 are suggested according to 6th pay commission, and fitment factor of 2.57 are suggested to all employees, according to 7th pay commission. On basis of fitness factor, the minimum basic pay for employees was set at Rs 18000 per month, up from Rs 7000, that is 2.57 times basic pay under 6th pay commission.
Minimum & Maximum Salaries Of Central Government Employees
With the 8th pay commission implement and expected fitment factor of 3.68, the salary for employees across 18 matrix levels is expected to make increases. For example, at the level 1 pay matrix, the basic salary will increase from Rs 18,000 under the 7th CPC and to Rs 21,600 under the 8th CPC. According to pay matrix level 18, at the highest level, the basic salary will increase from Rs 2,50,000 to Rs 3,00,000
Will Budget 2024 announce the 8th Pay commission?
Ritika Nayyar, Partner, Singhania & Co. says, “ Since the Budget 2024 shows the expectation after PM Modi talk on 3rd consecutive term and new pay commission time also coming, the post elections need to focus on middle class fiscal interest that requires the complete preparation. Introduce it can help to improve the country’s economy but also stress the government.
As the central government employee asks from central to increase the fitment factor and make updates in their salaries, allowances, and benefits. So, it is expected that the government will make some modifications in their salary and other benefits and implement it under the 8th pay commission. It is expected to be implemented from January 2026. The formal announcement of this upcoming budget will soon be done. There is a multi-year gap between the budget announcement and implementation. The final decision will taken by central government on the basis of their priorities and the economic condition of the country.
Allowances and benefits under the 8th pay commission
8th pay commission will be expected to come with changes in employees’ salaries, allowances, and benefits. The central government employees get different types of allowances, such as transport allowance ( TA), house rent allowance ( HRA), and dearness allowance ( DA). It will be adjusted to make changes in inflation and improve the living costs after the implementation of the 8th Pay commission.
Currently, it us tough to evaluate the increase in income by follow 8th pay commission implementation. But on the basis of various adjustments, significant increases in salary are expected according to 18 pay matrix levels.
Government response on 8th Pay commission
The Indian government has not announced anything officially on the 8th Pay Commission. Despite the speculation, it is expected that the 8th pay commission will be effective from 2026. Last year, the finance secretary clarified that the government had not made any plans to set this pay commission
According to reports, When the new pay commission setup, it will benefits to around 48.62 lakh employees and 67.85 pensioners.
Demands of central government employees and pensioners
- Restore OPS and scrap NPS for employees
- To release the 18 months of DR/DA that was not released during covid to employees and pensioners, restore the commuted part of pension after 12 years rather than 15 years currently.
- Remove the 5% ceiling to make appointments, and grant compassionate appointments to all dependants/wards of deceased central government employees.
- Fill vacant posts of all cadres in departments and stop contractorisation and outsourcing in government offices.
- Ensure all democratic functioning of federations/associations according to JCM mechanism provisions.
- Grant recognition of federations/associations that are pending, and withdraw the de-recognition orders of Postal Gr. C Union, NFPE, ISROSA
- Stop imposing the Rule 15 1 (c) on service federations/associations
- Regularize the contractual labors, casual and GDS employees, that grant the fair status of automobile bodies to employees
