8th Pay Commission Announced: Central Government Employees Anticipate Salary Hike
In a significant move ahead of the Union Budget 2025, the Central government has announced plans to establish the 8th Pay Commission to revise the salaries of its employees and pensioners. The decision, approved during a Cabinet meeting chaired by Prime Minister Narendra Modi, was revealed by Union Minister Ashwini Vaishnaw on Thursday in New Delhi. However, the exact timeline for setting up the commission is yet to be disclosed.
The announcement has raised hopes among central government employees and retirees, with expectations of a salary hike. Reports suggest that the fitment factor—a key parameter used to calculate revised salaries—may increase from 2.57 to 2.86. If implemented, this adjustment could result in a notable rise in the basic pay of employees.
The last major revision under the 7th Pay Commission in 2016 introduced sweeping changes to the salary structure, including a simplified pay matrix and the replacement of the old pay bands and grade pay system. The minimum monthly salary was set at ₹18,000, while the maximum salary for Cabinet Secretaries reached ₹2.5 lakh. Additionally, the gratuity ceiling was raised to ₹20 lakh, and allowances such as HRA were rationalized.
The potential establishment of the 8th Pay Commission is expected to bring similar benefits, positively impacting millions of government employees and pensioners. A salary hike would not only improve their financial stability but also boost consumer spending, adding momentum to the economy ahead of the Union Budget.
As employees and retirees eagerly await further updates, the announcement has already sparked widespread anticipation of better financial prospects and enhanced living standards.
