8th Pay Commission: Central Govt Employees, Pensioners Await Salary Hike & Pension Details; here’s what we know

8th Pay Commission: There is a growing expectation among central government employees about the formation of the 8th Pay Commission. With the 7th Pay Commission nearing the end of its tenure after nearly nine years, there is growing concern over the future formation of the next Pay Commission.

The previous Pay Commission, the 7th Pay Commission, was set up by the Manmohan Singh-led government back in February 2014 and its recommendations were implemented in January 2016. The 7th Pay Commission will complete its 10-year term in January 2026.

The creation of a pay commission is the first step to review and adjust the basic salary of employees. Once established, the commission should engage with all relevant stakeholders and submit its findings to the government. Unlike the prompt formation of the 7th Pay Commission, there was a delay in the creation of the 8th Pay Commission. Various media reports have suggested that the formation of the 8th Pay Commission is imminent, in line with the tradition of governments to convene a pay commission approximately every ten years.

Landing factor

Salaries of Central Government employees are adjusted with the introduction of each Pay Commission by applying a weighting factor. The matching factor is a multiplier used to adjust the basic salaries and pensions of civil servants and pensioners. In the case of 7th Pay Commission, the salaries have been updated with an adjustment factor of 2.57. However, the salaried unions demanded a higher compliance ratio of 3.67.

Shiv Gopal Mishra, Secretary (Staff) of the National Council for Joint Consultative Mechanism (JCM), told NDTV Profit that a compliance ratio of at least 2.86 is expected for the 8th Pay Commission.

According to this matching factor, the minimum basic salary of a civil servant will increase to Rs 51,480, over the current minimum salary of Rs 18,000. Similarly, pensions will increase to Rs 25,740 from the current Rs 9,000 if the matching ratio is fixed at 2.86.

The 7th Pay Commission has suggested a fitment ratio of 2.57, which has led to an increase in the minimum pay of central government employees to Rs 17,990 from Rs 7,000. If the 8th Pay Commission recommends a compliance ratio of 2.86, the minimum wage of employees will rise to Rs 51,451 from the current Rs 17,990.

When will the 8th commission be formed?

Earlier this month, officials of the National Council of Joint Consultative Mechanism (NC-JCM) reportedly met Finance Minister Tukhin Kanta Pandey to present demands and requests from central government officials for the speedy establishment of the 8th Pay Commission. The NC-JCM is the apex body within the JCM structure which deals with matters relating to Central Government employees.

The NC-JCM submitted two memoranda demanding the immediate formation of the 8th Central Pay Commission. The first memorandum was handed over to Rajiv Gauba, the then Union Cabinet Secretary, during the presentation of the Union Budget in July 2024. The second memorandum was handed over to Gauba’s successor, T.V. Somanathan, who assumed the post of Cabinet Secretary on August 30.

Ahead of the Union Budget 2024-2025 tabled in Parliament on July 23, various media reports have suggested that the Center may announce the creation of the 8th Pay Commission. However, this proposal was not implemented.