The government is inching closer to officially notify the 8th Pay Commission. Once the terms of reference gets cabinet approval, the government will officially notify the new Pay Commission. Moreover, this will allow the commission to begin functioning.
Meanwhile, the Union Cabinet recently approved a 2% hike in Dearness Allowance (DA) and Dearness Relief (DR). With the latest raise, the DA/DR for the central government employees and pensioners is now 55%. This hike is effective from January 1, 2025 and the central government will pay the arrears to cover the period from January to March with the salary of April.
The central government employees currently receive Rs 18,000 as minimum basic pay. Meanwhile, central government pensioners get Rs 9,000 as minimum basic pension under the 7th Pay Commission.
After the latest revision in DA/DR, the minimum salary of central government employees is now Rs 27,900 per month (Basic+DA). Meanwhile, the minimum pension now stands at Rs 13,950 (Basic+DR).
8th Pay Commission: Potential 100% Salary Hike
According to the experts, the 8th Pay Commission may consider the fitment factor ranging between 1.92-2.86. Considering these fitment factors, the potential pay revisions may range between 92-186%. The most likely fitment factor could be 2, which translates into a potential 100% pay hike.
Here’s the possible pay revision under the 8th Pay Commission:
Fitment Factor | Minimum Basic Salary (Rs) | Minimum Basic Pension (Rs) |
---|---|---|
1.92 | 34,560 | 17,280 |
2 | 36,000 | 18,000 |
2.08 | 37,440 | 18,720 |
2.86 | 51,480 | 25,740 |
Timeline
Central government employees and pensioners believe that they may get the salary revisions from January 2026. However, several media reports suggest that the government may take more time to implement the new Pay Commission.
The new Pay Commission will officially begin its term from January 2026. However, the revised salary and pension changes may not come into effect until early 2027, Financial Express quoted sources as saying.
According to the report, as soon as the new pay scale comes into effect, the central government will provide its employees and pensioners the arrear of 12 months.
The 8th Pay Commission may finalise its recommendations within 15 to 18 months of its formation, and submit an interim report before submitting the final recommendations, said the report. The full report will reportedly come only by the end of 2026.
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Written By
Akshat Mittal
Apr 04, 2025 09:34