The 8th Central Pay Commission (CPC) is expected to bring a significant pay hike for central government employees and pensioners in India. According to Goldman Sachs, salaries could increase by up to ₹19,000 per month if the commission’s recommendations are implemented. This pay revision is estimated to benefit 50 lakh employees and 65 lakh pensioners nationwide.
What is the Pay Commission?
A Pay Commission is a government-appointed body responsible for reviewing and recommending salary, pension, and benefits revisions for central government employees and pensioners. It is generally constituted once every 10 years and takes into account factors like inflation, cost of living, and economic conditions before making recommendations.
Watch Here: Union Government Approves Eighth Pay Commission
Projected Salary Increase Under 8th Pay Commission
Currently, a mid-level government employee earns an average pre-tax salary of ₹1 lakh per month. Depending on the budget allocation, the expected salary hike could be:
- ₹1.75 lakh crore budget → Salary may rise to ₹1,14,600 per month
- ₹2 lakh crore budget → Salary may increase to ₹1,16,700 per month
- ₹2.25 lakh crore budget → Salary may go up to ₹1,18,800 per month
When Will The Pay Hike Take Effect?
Although the government has not yet officially announced the formation of the 8th Pay Commission, experts speculate that the panel could be constituted in April 2025. If this timeline holds, the recommendations may take effect by 2026 or 2027.
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How Will the 8th Pay Commission Differ from the 7th?
The 7th Pay Commission was implemented in 2016 at a cost of ₹1.02 lakh crore, revising salaries and pensions retrospectively from January 2016. The minimum basic salary was increased from ₹7,000 to ₹18,000, with a fitment factor of 2.57x used to determine the new pay structure.
For the 8th Pay Commission, if the fitment factor is increased to 3 or more, central government employees can expect a significant salary boost. However, former Finance Secretary Subhash Chandra Garg has cautioned that an increase beyond 1.92x may be unrealistic.
Once established, the 8th Pay Commission will consult employee unions and stakeholders to finalize salary revisions. Unions are expected to push for a fitment factor similar to the 7th CPC to secure higher pay increases.