8th Pay Commission approved: What salary hike can central government employees expect?

A key multiplier called the ‘fitment factor’ is used to calculate the salaries.

Published on: Jan 18, 2025, 12:23:05 IST

By HT News Desk, New Delhi

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The Union Cabinet, led by Prime Minister Narendra Modi on Thursday approved the 8th Pay Commission to revise salaries of the central government employees, with the crucial decision being made ahead of the annual February 1 Union Budget.

The Union Cabinet, led by prime minister Narendra Modi approved the 8th Pay Commission on Thursday. (Representational Image)

Salary hike

The central government has not revealed the percentage by which salaries of its staff will be raised. However, experts have estimated that the “fitment factor" could see a rise from the existing 2.57 to 2.86.

Also Read | 8th Pay Commission approved: What does it mean? Who will benefit after Cabinet nod? Key facts

Therefore, with a fitment factor of 2.86, the minimum basic salary of the government employees could nearly triple, from ₹18,000 to ₹51,480 per month.

Employee unions had demanded a 3.68 fitment factor for the 7th Pay Commission salary revision, but the government of the day decided on a fitment factor of 2.57.

What is ‘fitment factor’?

It is a key multiplier used to calculate salaries and pensions for the government staff. It is determined through factors such as inflation, employees' requirements, government's affordability, etc.

What is Pay Commission?

Every 10 years, the government constitutes the Pay Commission to review and recommend changes to the salary structure of its employees. Additionally, the commission reviews bonuses, perks, allowances, and other benefits provided to government employees.

There have been seven Pay Commissions since 1946. Currently, recommendations of the 7th Pay Commission, formed by the previous Manmohan Singh-led United Progressive Alliance government in 2014, are being followed. Its recommendations were implemented on January 1, 2016.

How many beneficiaries of 8th Pay Commission?

Nearly 50 lakh employees, including defence personnel, are expected to benefit from its recommendations. Additionally, 65 lakh pensioners – including defence retirees – who receive their pensions from the Centre, are also likely to benefit from the recommendations.

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