The government has approved the creation of the 8th Pay Commission to revise the salaries of central government employees and pensioners, with the changes expected to take effect from January 1, 2026. This decision was made ahead of the Union Budget 2025 and aims to adjust salaries in line with current inflation rates.
The 7th Pay Commission, which started on January 1, 2016, introduced several significant changes. It set a fitment factor of 2.57, meaning it multiplied the salaries of central government employees by 2.57 times across all levels. It also raised the minimum basic salary to ₹18,000, a large increase from ₹7,000 under the 6th Pay Commission. Additionally, the minimum pension increased from ₹3,500 to ₹9,000.
The 6th Pay Commission, introduced in January 2006, set a fitment factor of 1.86 and revised the minimum basic salary to ₹7,000, up from ₹2,750 in the 5th Pay Commission. The minimum pension also rose from ₹1,275 to ₹3,500 per month.
Although no official announcements have been made yet, some reports suggest that the 8th Pay Commission might have a fitment factor between 2.28 and 2.86. If this happens, it could increase the minimum basic pay from ₹18,000 to anywhere between ₹41,000 and ₹51,480.
To get more information about the 8th Pay Commission’s expected salary changes, click here.
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Published on: Jan 22, 2025, 12:16 PM IST
Kusum Kumari
Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.
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