8th Pay Commission Salary Hike: What Central Employees Can Expect

On January 16, 2025, Prime Minister Narendra Modi’s Union Cabinet gave its approval for the establishment of the 8th Pay Commission. The action, which was taken only days before the Delhi Assembly elections, is expected to raise public sector employees’ salaries.

Prime Minister Modi expressed the government’s support for its employees on X (previously Twitter), stating “We are all proud of the efforts of all Government employees, who work to build a Viksit Bharat. The Cabinet’s decision on the 8th Pay Commission will improve quality of life and give a boost to consumption.”

The declaration was made months after central government employees’ dearness allowance (DA) surpassed 50% of their base pay. Employees and pensioners of the central government started receiving 53% of their base pay as DA/relief on July 1, 2024, with the next revision scheduled for January 2025.

What Central Government Employees Can Anticipate from the 8th 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.

Related Article – Centre Approves 8th Pay Commission To Revise Salaries, Pension Allowances

The fitment factor, the primary multiplier used to calculate salaries and pensions, may increase from 2.57 to 2.86, according to reports, however the precise percentage of the pay increase has not been made public. This might result in a huge increase in the minimum basic income for government employees, from Rs 18,000 to Rs 51,480.

What is fitment factor?

When determining the updated wage and pension amounts for central government personnel, the fitting factor is a crucial component. It acts as a multiplication coefficient, modifying the pay scale to reflect the recommendations of the new commission.

The minimum basic income for central government employees was raised from Rs 7,000 under the 6th Pay Commission to Rs 18,000 during the 7th Pay Commission due to the fitment factor of 2.57. Benefits, allowances, and performance compensation are not included in the base wage. Under the 7th Pay Commission, the monthly minimum wage increased to Rs 36,020 when dearness allowance (DA), housing rent allowance (HRA), transport allowance (TA), and other benefits are taken into account.

Now, different allowances might vary based on the final instructions from the 8th Pay Commission. It is anticipated that this modification will significantly raise central government employees’ pay.

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