New Delhi:
The salaries of millions of government employees are set to increase considerably once the 8th Pay Commission comes into effect. According to a report by Ambit Capital, the salaries are likely to go up by almost 30 – 34 per cent. The new pay scale is likely to take effect from January 2026. However, before the 8th Pay Commission comes into effect, it is required to first get prepared, sent to the government, and then approved.
8th Pay Commission To Impact 11 Million People
Once approved, the 8th Pay Commission will raise basic pay, allowances, and retirement benefits of government employees. It is slated to impact around 11 million people, which includes about 4.4 million central government employees as well as nearly 6.8 million pensioners.
Notably, only broad announcements have been made, while finer details, including who will chair the commission and what will be its terms are still to come in the public domain.
8th Pay Commission Fitment Factor
Fitment factor is a crucial aspect of deciding the new salaries according to the new pay scale. Previously, the 7th Pay Commission made use of a factor of 2.57. To break this further down, if an individual had a basic pay of Rs 7,000, it went up to Rs 18,000 per month under the revised pay commission.
In the case of the 8th Pay Commission, the factor is likely to remain between 1.83 and 2.46. Once the exact figure is confirmed, it will significantly impact the amount of the hike for employees and pensioners.
Previous Pay Commissions
Previous Pay Commissions have recommended varying levels of salary hikes. For example, while the 6th Pay Commission (2006) offered a significant increase of around 54 per cent in overall pay and allowances, the 7th Pay Commission (2016), in contrast, proposed a more moderate raise of 14.3 per cent in basic pay and approximately 23 per cent in the first year when allowances were included.