The Union Finance Ministry recently clarified in the Rajya Sabha that there are no plans to establish an 8th Central Pay Commission as of now. This comes at a time when central government employees are eagerly waiting to hear about the formation of the new Central Pay Commission. Additionally, this sparked widespread debate across the country. The update by the Finance Ministry has left over 1 crore central government employees and pensioners in disappointment.

Initially, government employees thought that the government may announce the formation of a new Pay Commission in February 2025 during the Budget. However, the government’s clarification left widespread disappointment among the central government employees. However, the Confederation of Central Government Employees had also written a letter to Prime Minister Narendra Modi, demanding to set up a new Pay Commission without any further delay.

8th Pay Commission: 186% Salary Hike On The Cards?

Shiv Gopal Mishra, secretary of the staff side of the National Council of Joint Consultative Machinery (NC-JCM), had stirred up excitement among central government employees when he said that the next Pay Commission may propose a fitment factor of “at least 2.86”. Furthermore, this could lead to a substantial 186% pay hike.

Additionally, if the central government OKs this fitment factor, the minimum basic salary for the central government employees could rise from Rs 18,000 to Rs 51,480. If the proposed fitment factor is implemented, central government pensioners’ pensions can skyrocket from Rs 9,000 to Rs 25,740.

Other than this, several media reports suggest that the central government may come up with a new mechanism to revise salaries and pensions based on employees’ performance and inflation rates. The government may forgo Pay Commission framework with this shift in the approach. A Pay Commission typically revises salaries every decade. According to several media reports, the government may come up with a more dynamic system, ensuring that salaries aligns with current economic scenarios.

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