The Union Cabinet gave the nod to form the 8th Pay Commission earlier this year to revise the salaries of central government employees and retirees. Although the constitution of the commission has been approved by the government, over a crore of central government employees and retirees wait for the official announcement.
When will the 8th Pay Commission submit the recommendations?
The recommendations of the 8th Pay Commission are expected to be submitted by the end of 2025, while it is scheduled to come into effect from January 2026 onwards, according to a report by Ambit Institutional Equities. However, the actual rollout will depend on the completion of the report, its submission to the government, and the approval of its recommendations.
When will the recommendations of the 8th Pay Commission be implemented?
Following the approval, the recommendations of the 8th Pay Commission are expected to be implemented in FY27 and are likely to increase government salaries and pensions by 30-34%, the report said.
8th Pay Commission hike: Cost to the government & role of fitment factor
The 30-34% hike in salaries and pensions, estimated to cost the government an additional Rs1.8 lakh crore, the report stated. Notably, Salaries, pensions, and allowances are adjusted through pay commissions using the fitment factor. This important multiplier decides the salaries and pensions of government employees, taking into account factors like inflation, employee requirements, and the government’s financial capacity.
Who are the beneficiaries of the 8th Pay Commission?
The recommendations of the 8th Pay Commission will directly benefit approximately 44 lakh central government employees across various ministries and departments, along with 68 lakh pensioners, totalling up to more than a crore direct beneficiaries. Notably, the 4.4 million central government employees and armed forces personnel represent 0.7% of India’s 60 crore labour force, and nearly 9% of the formal sector, the report said.