The Union Cabinet has approved the formation of the 8th Central Pay Commission, with early indicators suggesting a significant salary boost for over one crore central government employees and pensioners. The new commission might recommend a fitment factor of 2.86, potentially raising the minimum basic salary from the current Rs 18,000 to Rs 51,480.
Union Minister Ashwini Vaishnaw announced the formation of the new pay panel, which aims to implement revised salaries by 2026 when the current commission’s term ends. For pensioners, the minimum pension could increase from Rs 9,000 to Rs 25,740 under the proposed fitment factor.
The announcement marks a continuation of the government’s decade-based pay revision pattern. The current 7th Pay Commission, implemented in 2016, had set the fitment factor at 2.57, which had increased the minimum basic salary from Rs 7,000 to Rs 18,000.
“The early establishment of the 8th Pay Commission will ensure timely revision of salaries,” Vaishnaw said during a press briefing in New Delhi. This proactive approach allows sufficient time for review and implementation of the recommendations.
The history of pay commissions shows a steady increase in basic salaries – from Rs 30 under the first commission to Rs 80 under the second, eventually reaching Rs 18,000 under the current seventh commission. The anticipated 186% increase under the 8th Pay Commission would be one of the most substantial raises yet.
The government’s decision to announce the commission well ahead of the 2026 implementation date indicates its commitment to systematic salary revision for public sector employees.
