In a major development for government employees, the government has sought inputs from key stakeholders in order to set up the 8th Central Pay Commission. The Parliament was informed about the development on Monday that the government had sought inputs from stakeholders, including the Defence and Home ministries, the Department of Personnel and Training, as well as states. In a response to a question regarding the government not setting up the Commission even after six months, Union Minister of State (MoS) for Finance Pankaj Chaudhary said, "Inputs have been sought from major stakeholders, including Ministry of Defence, Ministry of Home Affairs, Department of Personnel & Training and from States".
8th Pay Commission
Earlier this year, in January, the government gave its nod for setting up the 8th Pay Commission aimed at revising the salaries of almost 50 lakh central government employees. The revised regime will also ensure an allowance benefit for approximately 65 lakh pensioners.
In a written reply to the Lower House on Monday, Chaudhary said that the appointment of chairperson and members of the 8th CPC will follow after the government notifies the 8th Central Pay Commission.
8th Pay Commission Expected Timeline
When asked about the expected timeline of the implementation of the revised pay scales, Chaudhary responded, "The implementation would be taken up once the recommendations are made by the 8th CPC and are accepted by the Government".
Generally, the Central Government sets up a Pay Commission every 10 years to review and revise the salaries of government employees. In this regard, the 7th Pay Commission was established in February 2014, while its recommendations took effect from January 1, 2016. The 8th Pay Commission is scheduled to be implemented starting January 1, 2026.
To offset the impact of inflation and preserve the real value of employees' salaries, central government employees receive a Dearness Allowance (DA). This allowance is revised every six months, based on prevailing inflation rates.
8th Pay Commission Fitment Factor
The 7th Pay Commission made use of a fitment factor of 2.57. To break this further down, if an individual had a basic pay of Rs 7,000, it went up to Rs 18,000 per month under the revised pay commission.
In the case of the 8th Pay Commission, the factor is likely to remain between 1.83 and 2.46. Once the exact figure is confirmed, it will significantly impact the amount of the hike for employees and pensioners.
