8th Pay Commission: On January 16, 2025, the Union Cabinet sanctioned the establishment of the 8th Pay Commission, tasked with revising the salaries of central government employees. Reports indicate that the National Council-Joint Consultative Machinery (NC-JCM) has requested a fitment factor of no less than 2.57, which aligns with the previous 7th Pay Commission.
7th pay commission
The 7th Pay Commission resulted in a substantial 157 percent increase in salaries and pensions, attributed to the fitment factor of 2.57, which raised the minimum salary for central employees from Rs 7,000 to Rs 18,000.
Current minimum wage of Rs 18,000 per month
The fitment factor serves as a multiplier for adjusting the basic pay and pension of government personnel; for instance, a fitment factor of 2.57 signifies a 257 percent salary increase. Consequently, the current minimum wage of Rs 18,000 per month is projected to rise to Rs 46,260, while the minimum pension of Rs 9,000 per month is expected to increase to Rs 23,130.
Fitment factor of 1.92 may be adopted in the 8th Pay Commission
There are indications that a fitment factor of 1.92 may be adopted in the 8th Pay Commission, which would elevate the minimum salary of central government employees from Rs 18,000 to Rs 34,560, reflecting a 92 percent increase.
Possibilities of delay
The fitment factor of 2.57 was established by the 7th Pay Commission in accordance with the recommendations made by Dr. Akroyd’s formula for determining a minimum living wage, which accounts only for essential items and does not consider contemporary expenses such as internet services. It is anticipated that the 8th Pay Commission may be implemented starting January 1, 2026; however, there are concerns that its rollout could be postponed, potentially leading to further delays.
