New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the establishment of the 8th Central Pay Commission to review and revise the salary structure of central government employees and pensioners. The 7th Pay Commission, implemented in January 2016, is set to conclude its term in 2026. Following the typical ten-year cycle, the 8th Pay Commission is expected to present its recommendations before this term ends, with potential implementation from January 1, 2026.
While the specific recommendations of the 8th Pay Commission are yet to be determined, historical trends provide some context. The 7th Pay Commission increased the minimum basic pay from ₹7,000 to ₹18,000 per month, applying a fitment factor of 2.57. Speculations suggest that the 8th Pay Commission might propose a fitment factor between 2.5 and 2.86, potentially raising the minimum basic pay to approximately ₹45,000 per month.
The establishment of the 8th Pay Commission underscores the government’s commitment to regularly updating the remuneration of its employees, ensuring alignment with economic conditions and inflation. The commission’s recommendations will be formulated after comprehensive consultations with central and state governments, as well as other stakeholders.