The formation and implementation of the 8th Central Pay Commission is a subject of widespread debate and anticipation across the country. The Union Finance Ministry has recently clarified in the Rajya Sabha (upper house of the Indian Parliament) that as of now, it does not have any intention to set up a new Pay Commission. This statement sparked the tension in the minds of over 1 crore government employees and pensioners.

This article tackles concerns surrounding the formation of the new Pay Commission, covering essential timelines and potential salary and pension increases for central government employees and pensioners.

8th Pay Commission: Potential Salary Hike

Shiv Gopal Mishra, secretary of the staff side of the National Council of Joint Consultative Machinery (NC-JCM), had earlier said that the next Pay Commission may recommend a fitment factor of at least 2.86. If the government approves this fitment factor, it could significantly impact the salaries of central government employees.

At this fitment factor the minimum basic pay for the central government employees could rise from Rs 18,000 to Rs 51,480, a substantial 186% salary hike. Similarly, applying the same fitment factor, the pensions of the central government pensioners may rise from Rs 9,000 to Rs 25,740.

Key Timelines

Earlier, the reports suggested that the central government may announce the formation of the new Pay Commission during the Budget in February 2025. However, the recent clarification by the ministry of finance came as a shocker for the central government employees and pensioners.

Recently, the Confederation of Central Government Employees had written a letter to Prime Minister Narendra Modi to set up a new Pay Commission without any further delay. Furthermore, media reports suggested that the All India State Government Employees Federation has decided to hold a nationwide protest on the new year on the issue. Subhash Lamba, National President of the Federation, announced that the Federation will hold its National Executive meeting in Kanpur on December 28-29, reported ‘Dainik Tribune’. “A concrete plan of agitation will be made in it,” the report quoted Lamba.

According to several other media reports, the central government may come up with a new mechanism to revise the salaries of employees and pensions of pensioners, depending on their performances and inflation.

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