Mumbai, January 31: Ahead of the Union Budget 2025, the Narendra Modi-led government approved setting up the 8th Pay Commission to revise the salaries of nearly 50 lakh central government employees and the allowances of 65 lakh pensioners. The 8th Pay Commission will replace the existing 7th Pay Commission. I&B Minister Ashwini Vaishnaw made the announcement, saying that the chairman and two members of the Commission will be appointed soon.
Amid this, Finance Minister Nirmala Sitharaman is expected to announce the official implementation date of the 8th Pay Commission when she presents the Union Budget in Parliament on Saturday, February 1. It is reported that an official announcement regarding the date of implementation of the 8th Pay Commission salary structure is likely to be made in the budget speech. 8th Pay Commission: Understanding Fitment Factor and Expected Salary Hike for Central Government Employees From Level 1 to 10.
While the current 7th Pay Commission will expire in 2026, the central government is likely to direct the implementation of the 8th Pay Commission before that. Reports suggest that the 8th Pay Commission will be implemented on January 1 next year; however, Nirmala Sitharaman could make an official announcement regarding the date of its implementation in Budget 2025.
The implementation of the 8th Pay Commission will boost the salary structure of central government employees and pensioners. Having said that, the salary revisions will depend on the fitment factor. Notably, the fitment factor will help to calculate the hike in the basic salary. A fitment factor of 2.57 under the 7th Pay Commission raised the salaries in Level 1 from INR 7,000 to INR 18,000. 8th Pay Commission vs 7th Pay Commission: Major Changes in Salary, Pension Structure Under 8th CPC and 7th CPC.
Now, it is reported that the fitment factor is likely to increase from 2.57 to 2.86, meaning the salary in level 1 would rise from INR 18,000 to INR 51,000. Seven pay commissions have been constituted since the country attained Independence in 1947, with the last one implemented in 2016.
(The above story first appeared on LatestLY on Jan 31, 2025 05:11 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).