8th Pay Commission: As Finance Minister Nirmala Sitharaman prepares to present her 7th Union Budget on July 23, expectations are running high among government employees that the FM would announce the 8th Pay Commission in her budget speech. Over 49 lakh central government employees and 67 lakh pensioners are eagerly waiting for the Modi government to announce setting up the 8th Pay Commission.
In recent times, several bodies and unions representing central government employees have submitted proposals to the Centre on the 8th Pay Commission, the restoration of the old pension scheme, and the release of 18 months’ dearness allowance arrears.
FM Sitharaman may make a major announcement regarding the establishment of the 8th Pay Commission in tomorrow’s budget, according to reports.
Historically, a new pay commission has been established every ten years. If the Modi government follows this pattern and introduces the 8th Pay Commission in 2025-26, it could result in a salary increase of up to 44.44%.
Central govt employees and advisory councils press for 8th Pay Commission formation
Central government employees have consistently pressed for the formation of the 8th Pay Commission through various forums. Numerous employee committees have repeatedly urged the central government to establish the 8th Pay Commission to revise basic salaries, allowances, pensions, and other benefits.
In a recent letter to the Cabinet Secretary of the Government of India, SB Yadav, General Secretary of the Employees Federation, called for the creation of the 8th Pay Commission, the restoration of the old pension scheme, the release of 18 months’ dearness allowance, and additional relief for employees and pensioners.
The National Council of Joint Advisory Machinery has also echoed the demand for the formation of the 8th Pay Commission. General Secretary C. Srikumar has confirmed that this request will be formally presented to the central government.
However, it’s important to note that the Modi government has not yet officially announced the establishment of the 8th Pay Commission, and no specific implementation date has been set. Typically, it takes around 12 to 18 months for a pay commission to formulate its recommendations after being established. During this period, the commission evaluates various factors, including current economic conditions, to propose adjustments to employee salaries and benefits.
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Central govt employees demand increase in Fitment Factor from 2.57 to 3.68
Central government employees have been advocating for an increase in the fitment factor from 2.57 to 3.68. The fitment factor is a key multiplier used to calculate salaries and pensions for government employees. For example, the 2.57 fitment factor was applied when revising salaries from the 6th Central Pay Commission to the 7th Pay Commission.
The 6th Pay Commission proposed a fitment factor of 1.86, while the 7th Pay Commission set the factor at 2.57. This adjustment raised the minimum basic pay for central government employees to Rs 18,000 per month, up from Rs 7,000, reflecting a 2.57-fold increase from the previous commission. Employees are now urging the government to elevate the fitment factor to 3.68 to further enhance their salaries and benefits.