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8th Pay Commission : Central employees may get 17 months’ arrears, great news

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8th Pay Commission : Central employees may get 17 months' arrears, great news

8th Pay Commission Latest : Based on past experience, it takes approximately 18 to 24 months for a pay commission to prepare its report. Government review and final approval of the report then takes another three to nine months.

8th Pay Commission Latest : Central employees are awaiting the recommendations of the Eighth Pay Commission. In fact, in January, the central government announced plans to form the Eighth Pay Commission, but even after nearly 10 months, neither the commission has been formed nor a related notification has been issued. Consequently, there is confusion among central employees. Employees are unable to understand when the commission will be formed and when its recommendations will be implemented.

When will the recommendations be implemented?

The tenure of the Seventh Pay Commission is scheduled to end on December 31, 2025. Based on past experience, a Pay Commission typically takes approximately 18 to 24 months to prepare its report. After that, the government’s review and final approval of the report takes another three to nine months.

For example, the 7th Pay Commission was constituted in February 2014 and submitted its report in November 2015. It was implemented from January 1, 2016. If the same timeframe is followed, the 8th Pay Commission’s report will be released in the financial year beginning April 2027. If the Pay Commission’s recommendations are implemented retroactively, i.e., from January 1, 2026, central government employees will receive approximately 17 months of arrears.

Kotak’s Estimate

Recently, Kotak Institutional Equities released an estimate report regarding the 8th Pay Commission. According to this report, the minimum salary under the Eighth Pay Commission could increase from ₹18,000 to approximately ₹30,000, implying a fitment factor of approximately 1.8. This means that real salaries for employees would increase by approximately 13%. According to the report, the fiscal burden of this Pay Commission could range from 0.6–0.8% of GDP, or approximately ₹2.4–3.2 lakh crore.

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