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Ahead of the 8th Pay Commission, Here’s A Recap of Past Panels Outcomes

Updated on: Jan 18, 2025, 9:29 AM IST
As the 8th Pay Commission approaches, here's a look at outcomes from previous panels that shaped India's government employee salary structure.
Ahead of the 8th Pay Commission, Here’s A Recap of Past Panels Outcomes
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Ahead of the highly anticipated 8th Pay Commission, the Union Cabinet has approved a salary revision for nearly 50 lakh Central government employees.

The Central Pay Commissions, typically established once every decade, play a crucial role in evaluating and recommending changes to pay scales, allowances, and benefits for government employees, taking into account key economic factors like inflation.

While the specifics of the upcoming salary hike remain unclear, Union Minister Ashwini Vaishnaw has confirmed that the 7th Pay Commission, which has been in effect since 2016, will continue to be valid until 2026.

As we await further details for the 8th Pay Commission details, let’s take a look at the outcome of the previous Pay Commissions that have shaped the salary structure of government employees in India.

7th Pay Commission Salary Hike

Under the 7th Pay Commission, the fitment factor was set at 2.57, meaning that the basic pay for central government employees and pensioners was multiplied by 2.57 to determine the revised salary.

The fitment factor is a key multiplier used to calculate the revised salaries and pensions for government employees, particularly during the implementation of pay commission recommendations in India.

Last year, Under the 7th pay commission the Union Cabinet approved a 3% increase in the Dearness Allowance (DA) for central government employees, ahead of the Diwali festival, as per reports on October 16.

6th Pay Commission Salary Hike

The 6th Pay Commission introduced a fitment factor of 1.86, which resulted in a 1.86% increase in the basic pay for central government employees and pensioners.

5th Pay Commission Salary Hike

The 5th Pay Commission implemented a structure where 40% of the basic pay from the existing scale was added to the existing emoluments, which resulted in an increment.

8th Pay Commission salary hike: How is Pay Calculated?

The government establishes a pay commission to assess and propose adjustments to the salary structure of public sector employees, considering elements like inflation, economic conditions, income gaps, and other relevant factors. Besides the basic salary, the commission also examines bonuses, allowances, benefits, and other perks offered to government workers.

Typically set up once every ten years, the Central Pay Commissions evaluate and recommend revisions to the pay scales of government employees. To understand how the salary adjustments are determined, it is important to explore the 8th Pay Commission: How Much Salary Central Government Employees Can Expect? as it outlines the expected changes and calculations for government employees.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Published on: Jan 18, 2025, 9:29 AM IST

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