New Delhi: In a move that has taken many by surprise, the Central Government recently announced the formation of the 8th Central Pay Commission (CPC). This decision has sparked anticipation among over one crore Central Government employees and pensioners, who are now eagerly awaiting updates on potential salary and pension hikes.

M. Raghavaiah, a key leader of the National Council-Joint Consultative Machinery (NC-JCM), has emphasized the need for a fitment factor of “at least 2” under the new Pay Commission. Speaking to NDTV Profit, Raghavaiah highlighted the importance of a fair revision in pay scales to address inflation and cost-of-living concerns.

Fitment Factor: What Experts Say

Former Finance Secretary Subhash Chandra Garg, in an exclusive interview, suggested that the government might consider a fitment factor in the range of 1.92 to 2.08. Raghavaiah’s demand for a minimum fitment factor of 2 aligns with this range and is expected to be a focal point in discussions leading up to the implementation of the 8th CPC.

Expected Salary Hike

Under the 7th Pay Commission, the minimum basic salary for Central Government employees currently stands at Rs 18,000, while the minimum pension is Rs 9,000. Based on the proposed fitment factors, potential salary hikes could be significant:

• At a 1.92 fitment factor: The minimum basic salary could increase to Rs 34,560, and the minimum pension could rise to Rs 17,280.
• At a 2.00 fitment factor: The minimum basic salary could increase to Rs 36,000, marking a 100% increase. The minimum pension could rise to Rs 18,000.
• At a 2.08 fitment factor: The minimum basic salary could increase to Rs 37,440, reflecting a 108% increase. The minimum pension could rise to Rs 18,720.

Implementation Timeline

The formation of the 8th CPC was confirmed by Union Minister of State for Finance, Pankaj Chaudhary, in a written response to the Rajya Sabha on February 4. However, when asked about the appointment of the commission’s chairperson and members, he stated that the details “will be decided in due course.”

Shiv Gopal Mishra, Secretary (Staff Side) of NC-JCM, provided an estimated timeline. According to him, the 8th Pay Commission is expected to be established by February 15, 2025. The commission’s report is anticipated to be finalized by November 30, 2025, following which the government will review it in December. If the process proceeds as planned, the new pay structure could be implemented from January 2026.

What’s Next?

With discussions intensifying, government employees and pensioners are closely monitoring the developments. The focus remains on how the government will address the expectations of the workforce while balancing fiscal constraints. As the process unfolds, all eyes will be on the official announcements that shape the future of government salaries and pensions in India.