8th Pay Commission: The government is moving closer to officially notify the new Pay Commission. The terms of reference are likely to be sent to the Union cabinet for approval later this month or by early April. Once the terms of reference gets cabinet approval, official notification will be the next thing. Moreover, this will allow the commission to begin functioning.
The government had recently sought recommendations on the commission’s mandate from the ministries of defence and home affairs, and the Department of Personnel and Training (DoPT). According to media reports, the finance ministry has already got some feedback from the key stakeholders on the terms of reference.
“We have got some inputs. Some are still pending. It will be sent to the cabinet this month or early next month for approval. As soon as the approval comes, a notification will be issued,” a top government official told Moneycontrol.
8th Pay Commission: Salary Hike And Other Details
Currently, central government employees and pensioners are paid under the 7th Pay Commission. The then UPA government set up the 7th Pay Commission in 2014, and the NDA government implemented its recommendations in 2016. The central government pays a minimum basic salary of Rs 18,000 and the minimum basic pension of Rs 9,000 under the 7th Pay Commission.
Experts predict that the 8th Pay Commission may consider the fitment factor ranging between 1.92-2.86. Considering these fitment factors, the potential pay revisions for the central government employees and pensioners may range between 92-186%. The most likely fitment factor might be 2 and this translates into a 100% pay hike for central government employees and pensioners.
Here’s the possible pay revision under the 8th Pay Commission.
| Fitment Factor | Minimum Basic Salary (Rs) | Minimum Basic Pension (Rs) |
|---|---|---|
| 1.92 | 34,560 | 17,280 |
| 2 | 36,000 | 18,000 |
| 2.08 | 37,440 | 18,720 |
| 2.86 | 51,480 | 25,740 |
Timeline
The government will officially finalize the terms of reference, after which the 8th Pay Commission will start its work. If the new Pay Commission is formed by the end of this month, the committee is expected to submit its report by March 2026. In this case, the whole process may complete its work in under a year. However, the past pay commissions have typically taken over a year to complete their work.
