8th Pay Commission Update: Will Minimum Salary Rise From ₹18,000 To ₹51,480? Pension Hike Details Inside

The Union Cabinet, led by Prime Minister Narendra Modi, has approved the formation of the 8th Pay Commission to revise the salaries and allowances of nearly 50 lakh central government employees and 65 lakh pensioners across the country. This crucial decision is expected to bring significant financial relief and structural changes to government pay scales.

Expected Salary and Pension Hike

As per reports, the fitment factor—a key metric in salary revision—is likely to be set between 1.92 to 2.86. If the upper limit of 2.86 is approved, the minimum basic salary of government employees will rise sharply from ₹18,000 per month to ₹51,480. Similarly, the minimum pension amount will increase from ₹9,000 to ₹25,740 per month.

A Look Back at Previous Pay Commissions

The history of pay commissions in India has played a vital role in shaping government salaries and benefits. Here’s a timeline of the key recommendations made by the past seven pay commissions:

1. 7th Pay Commission (2016)
   • Minimum salary: ₹18,000/month; Maximum salary: ₹2,50,000/month
   • Key features: Introduction of a new pay matrix, abolition of grade pay, and a focus on allowances and work-life balance
   • Beneficiaries: Over 10 million employees and pensioners
2. 6th Pay Commission (2006)
   • Minimum salary: ₹7,000/month; Maximum salary: ₹80,000/month
   • Key features: Introduction of pay bands and grade pay, and an emphasis on performance-related incentives
   • Beneficiaries: Nearly 6 million employees
3. 5th Pay Commission (1996)
   • Minimum salary: ₹2,550/month; Maximum salary: ₹26,000/month
   • Key features: Suggested reducing the number of pay scales and modernization of government offices
   • Beneficiaries: Around 4 million employees
4. 4th Pay Commission (1986)
   • Minimum salary: ₹750/month; Maximum salary: ₹8,000/month
   • Key features: Reduction of salary disparities across ranks and introduction of performance-linked pay
   • Beneficiaries: Over 3.5 million employees
5. 3rd Pay Commission (1973)
   • Minimum salary: ₹185/month; Maximum salary: ₹3,500/month
   • Key features: Focus on salary parity between public and private sectors and addressing inequalities in the pay structure
   • Beneficiaries: About 3 million employees
6. 2nd Pay Commission (1957)
   • Minimum salary: ₹80/month; Maximum salary: ₹3,000/month
   • Key features: Aimed at rationalizing pay structures and balancing living costs
   • Beneficiaries: Approximately 2.5 million employees
7. 1st Pay Commission (1946)
   • Minimum salary: ₹55/month; Maximum salary: ₹2,000/month
   • Key features: Introduced the concept of “living wage” and established the first structured pay scale post-independence
   • Beneficiaries: Around 1.5 million employees

What’s Next?

The 8th Pay Commission’s recommendations are expected to significantly impact government employees, particularly with higher salaries, revised pensions, and structural changes in allowances. The official framework and final decision on the fitment factor will be crucial in determining the financial benefits for millions of employees and retirees.

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