On January 16, 2025, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved the establishment of the 8th Pay Commission. This crucial move is expected to increase the salary of public sector workers in India, just days before the Delhi Assembly elections.
A Boost for Public Sector Workers
Prime Minister Modi expressed the government’s commitment to supporting its workforce through a post on X (formerly Twitter). He wrote, “We are all proud of the efforts of all Government employees, who work to build a Viksit Bharat. The Cabinet’s decision on the 8th Pay Commission will improve quality of life and give a boost to consumption.”
We are all proud of the efforts of all Government employees, who work to build a Viksit Bharat. The Cabinet’s decision on the 8th Pay Commission will improve quality of life and give a boost to consumption. https://t.co/4DCa5skxNG
Advertisement · Scroll to continue— Narendra Modi (@narendramodi) January 16, 2025
The announcement follows a significant increase in the Dearness Allowance (DA) for central government employees, which had crossed 50% of their basic salary earlier in 2024. Starting July 1, 2024, both central government employees and pensioners began receiving 53% of their basic pay as DA/relief. The next revision is expected in January 2025.
What the 8th Pay Commission Could Mean for Employees
Currently, the salary structure for central government employees is based on the 7th Pay Commission’s recommendations, which came into effect on January 1, 2016. With the formation of the 8th Pay Commission, a revision of the existing structure is on the horizon.
Although the exact salary hike percentage has not been disclosed, reports suggest that the fitment factor—the multiplier used to determine salaries and pensions—could increase from 2.57 to 2.86. If this adjustment is implemented, the minimum basic salary for government employees could see a substantial increase, rising from Rs 18,000 to Rs 51,480.
8th Pay Commission: Understanding the Fitment Factor
The fitment factor plays a crucial role in determining the revised salary and pension amounts for central government employees. It acts as a multiplier, adjusting the pay scale according to the new recommendations of the Pay Commission.
Under the 7th Pay Commission, the fitment factor was set at 2.57, which raised the minimum basic salary of central government employees from Rs 7,000 (as per the 6th Pay Commission) to Rs 18,000. This figure does not include perks, allowances, or performance pay. Once allowances such as Dearness Allowance (DA), House Rent Allowance (HRA), and Transport Allowance (TA) are included, the total minimum salary under the 7th Pay Commission rose to Rs 36,020 per month.
With the expected revisions in the 8th Pay Commission, various allowances are likely to be recalibrated, leading to a significant increase in the overall remuneration for central government employees.
Also Read: Central Government Approves 8th Central Pay Commission