8th Pay Commission: About 50 lakh employees and 65 lakh pensioners of the central government may get a shock. Till now the employees were expecting the minimum basic salary to increase from Rs 18,000 to Rs 51,0000. But according to the new report, the basic salary will increase by such a small amount
8th Pay Commission: A big news has come out for about 50 lakh employees and 65 lakh pensioners of the central government. Till now the employees were expecting the minimum basic salary of Rs 18,000 to increase to Rs 51,0000. But according to the new report, the basic salary will increase by such a small amount. On implementation of the 8th Pay Commission, the salary of the employees may increase by an average of 13%. Till now it was expected that the basic salary of the employees could be 3 times. But the new report may shatter the dreams of the employees. However, this relief is not going to be available immediately, because its implementation is not possible before the end of 2026 or the beginning of 2027.
How much will the minimum wage increase?
According to the report of Kotak Institutional Equities, the fitment factor in the 8th Pay Commission can be kept at 1.8. This means that the new salary will be decided by multiplying the current salary by 1.8. According to this, the minimum salary can be increased from Rs 18,000 to Rs 30,000 per month. Till now there were reports that it could increase to Rs 51,000. Employees may be shocked by these new possibilities regarding salary.
What is the fitment factor?
The fitment factor is a multiplier, with the help of which the old salary is converted into the new pay scale. For example, in the 7th Pay Commission, this factor was 2.57, due to which the salary of many employees increased.
Why the delay in implementation?
According to the report, the government has announced the 8th Pay Commission in January 2025, but neither its Terms of Reference (ToR) have been decided nor the members of the commission have been appointed yet. Kotak estimates that it will take about one and a half years for the commission to report, and after that it will take 3 to 9 months for the government to approve and implement it.
How much will it cost the government?
According to Kotak, the implementation of the Pay Commission will cost the government an additional Rs 2.4 to 3.2 lakh crore, which will be about 0.6-0.8% of GDP. The biggest beneficiaries will be Grade C employees, who constitute 90% of the central government workforce.
Impact on spending and savings
Like the previous pay commissions, this time too there is a possibility of increase in expenditure in areas like cars, consumer goods (FMCG). Kotak says that this will also increase people’s savings. It is estimated that due to the increase in salary, there can be additional savings of Rs 1 to 1.5 lakh crore, which can be invested in the stock market, bank deposits and physical assets.
Preparation of Finance Ministry
In a written reply in Parliament on 21 July 2025, Minister of State for Finance Pankaj Chaudhary said that work has started on the 8th Pay Commission. The ministry has sought suggestions from the Ministry of Defense, Ministry of Home Affairs, Department of Personnel and the states. When the commission gives its recommendations and the government approves them, then it will be implemented.
A new pay commission comes every 10 years
The Government of India usually constitutes a Pay Commission every 10 years, which makes changes in the salary and pension of employees keeping in mind inflation and expenses. Earlier, the 7th Pay Commission was implemented in the year 2016.
