The Central government has announced to set up the 8th Pay Commission to revise the salaries of Central government employees and pensioners. The decision was approved by the Union Cabinet during a meeting chaired by Prime Minister Narendra Modi on Thursday.
Union Minister Ashwini Vaishnaw confirmed the announcement in New Delhi but did not specify a date for setting up the commission.
This development, arriving just ahead of the Union Budget 2025, is expected to result in salary hikes for government employees and retirees.
Reports indicate the possibility of an increase in the fitment factor from 2.57 to 2.86—a key parameter used to calculate revised salaries. If implemented, this change could lead to a significant rise in the basic pay of government employees. The fitment factor determines how much the basic salary is multiplied to calculate revised pay and pensions.
The salary structure for government employees has undergone substantial changes under previous pay commissions. The 7th Pay Commission, implemented in 2016, replaced the older pay bands and grade pay system with a simplified pay matrix.
The approval of the 8th Pay Commission is anticipated to positively impact lakhs of government employees and pensioners and likely to boost disposable income and consumer spending.
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