New Delhi, March 5: The Union Cabinet, led by Prime Minister Narendra Modi, has approved the establishment of the 8th Central Pay Commission (CPC) to revise the salaries of nearly 50 lakh central government employees and allowances for 65 lakh pensioners. While the government has yet to appoint the commission’s chairman and two members, their names are expected to be announced soon.

The key focus remains on the Terms of Reference (ToR), which will define the framework for salary and allowance revisions. Reports suggest that the ToR is likely to be finalised by April 2025, setting the stage for significant pay structure changes. 8th Pay Commission: Massive Salary Hike on Cards for Central Government Employees, Here’s What To Expect.

Fitment Factor and Salary Revisions

A key component of the CPC’s recommendations is the ‘fitment factor,’ which determines the uniform increase in salaries across various pay levels. The 7th CPC had set this factor at 2.57, leading to a 157% salary hike at that time. For the 8th CPC, discussions suggest a potential increase in the fitment factor to 2.86. If approved, this adjustment could raise the minimum basic pay for Level 1 employees from the current INR 18,000 to INR 51,480, marking a significant enhancement in their earnings. 8th Pay Commission: Central Govt Employees To Get 50% Salary Hike? Know Implementation Timeline and Other Details.

Implementation Timeline

The 8th CPC is expected to commence its work in April 2025, with the revised pay structures likely to be implemented from January 1, 2026. This timeline aligns with the government’s objective to periodically reassess and adjust compensation structures in response to economic conditions and employee needs.

Impact on Employees and Pensioners

The proposed revisions aim to address inflationary pressures and enhance the financial well-being of government employees and pensioners. Beyond salary increments, the commission is also expected to recommend improvements in post-retirement benefits and allowances, ensuring a comprehensive approach to employee welfare.

Considerations and Speculations

While the anticipated fitment factor increase to 2.86 is a positive development, some experts suggest that the actual figure may vary. Predictions range between 2.28 and 2.86, potentially resulting in a basic salary hike of 40-50%. These variations underscore the importance of awaiting official announcements for precise details.

In summary, the 8th Central Pay Commission is poised to bring substantial changes to the compensation framework for central government employees and pensioners, reflecting the government’s commitment to their economic well-being.

(The above story first appeared on LatestLY on Mar 05, 2025 03:36 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).