The Union Cabinet led by Prime Minister Narendra Modi has already approved the ‘Terms of Reference’ (ToR) for the 8th Central Pay Commission (CPC). With this, the government has formally constituted the new CPC and has also issued the necessary notification. The Commission’s recommendations will be applicable to approximately 1.2 crore central government employees and pensioners.
**Announcement in January 2025**
In January 2025, the Central Government announced the constitution of the 8th Pay Commission to review and recommend revisions in the salaries and other allowances of Central Government employees. Justice Ranjana Prakash Desai, former judge of the Supreme Court of India, has been appointed Chairperson of the 8th CPC. Meanwhile, IIM Bangalore professor Pulak Ghosh has been appointed as a part-time member of the new pay commission. The government has appointed Pankaj Jain, Secretary in the Ministry of Petroleum and Natural Gas, as Member-Secretary of the Pay Commission.
The recommendations of the 7th Pay Commission were approved within six months and came into effect from January 1, 2016. If we look at the same time frame as a benchmark, the 8th Pay Commission is likely to be implemented around 20 months from now. The provisions of the 8th Pay Commission are expected to come into effect from January 1, 2026, after the tenure of the 7th Pay Commission ends. The government had said, “Generally, the recommendations of Pay Commissions are implemented at an interval of ten years. In view of this trend, the impact of the recommendations of the 8th Central Pay Commission is generally expected to be effective from January 1, 2026.”
**What is the current salary?**
At present, central government employees and pensioners are paid salaries under the 7th Pay Commission framework. Their minimum basic pay is ₹18,000, while pensioners get a minimum basic pension of ₹9,000. Meanwhile, under the 7th Pay Commission, the maximum basic pay is ₹2,25,000, while people holding top positions like Cabinet Secretary and others get ₹2,50,000 per month. Under the 7th Pay Commission, the fitment factor was fixed at 2.57; Additionally, Dearness Allowance (DA) and Dearness Relief (DR) currently stand at 58 percent.
**How much will the salary increase?**
Experts suggest that under the 8th Pay Commission, the fitment factor can be fixed at 2.86. Under the 7th Pay Commission, the minimum basic pay is ₹18,000. If the government decides to fix the fitment factor at 2.86 this time, the calculation will be as follows: 18,000 × 2.86 = 51,480. This shows that if the fitment factor is fixed at 2.86, the minimum basic pay will directly increase from ₹18,000 to ₹51,480. In other words, the basic salary may see a huge increase of 186 percent.
However, the government has not yet officially confirmed the fitment factor of 2.86 or a pay increase of 186 per cent. The unions are demanding that the fitment factor be fixed at 3. If this demand is accepted, the minimum wage may increase to ₹54,000.
