Salary Hike : If you are also a central government employee, there is a major update that concerns all central employees. You must read this update till the end to get the complete information in detail.
After a long wait, the discussions around the formation of the 8th Pay Commission have intensified. According to sources, there is a strong possibility that the commission will be formed soon — a development that could bring significant relief to millions of government employees. A recent report suggests that employees’ salaries may increase not by 20%, 30%, or even 40%, but possibly by an even higher percentage.
Salary Hike : Over 36 lakh employees and pensioners to benefit
More than 36 lakh central government employees and pensioners are likely to benefit from this decision. After years of anticipation, reports suggest that the groundwork for the 8th Pay Commission has begun. As per sources, the formation of the commission is expected by the end of August 2025, which will provide major relief to employees.
Government approval received, only formalities remain
According to reports, the central government has given its approval for the formation of the 8th Pay Commission. However, the official announcement and team formation are still pending. Finance Minister Nirmala Sitharaman recently stated that the government will begin work on this soon. It is expected that the committee will submit its report before January 2026, so that the new pay structure can be implemented from that date.
Structure of the commission — who will be the members?
Traditionally, each Pay Commission is headed by a retired Supreme Court judge or a senior bureaucrat, along with a team of economists, pension and expenditure experts, and administrative officers. The 8th Pay Commission is also likely to have a strong and experienced team, which will make recommendations regarding salary structure, pensions, dearness allowance (DA), and the fitment factor.
Expected salary hike of 40% to 50%
It is expected that the 8th Pay Commission may recommend a 40% to 50% increase in the employees’ basic pay. This hike will be based on a new fitment factor, which could range between 2.28 and 2.86. If the higher fitment factor is applied, then an employee with a current basic pay of ₹20,000 could see it rise to ₹46,600 to ₹57,200.
Massive salary hikes in previous pay commissions
Here’s how the basic pay has increased over the years:
Pay Commission Basic Salary
5th Pay Commission ₹2,750
6th Pay Commission ₹7,000
7th Pay Commission ₹18,000
Overall, there has been an approximate 554% total increase in salary till now. The 8th Pay Commission is also expected to continue this trend of major pay improvements.
Demand for 3.68 fitment factor
Some employee unions have demanded that the fitment factor be increased to 3.68. If this demand is accepted, an employee with a current basic pay of ₹30,000 could see it rise to ₹1,10,400 — marking one of the highest-ever pay hikes in the history of pay commissions.
Why the 8th Pay Commission is necessary
The cost of living has been rising sharply due to inflation.
To maintain employees’ purchasing power, periodic revisions in salary are essential.
The 7th Pay Commission came into effect in 2016 and remains applicable till January 2026. Therefore, it is crucial that a new committee be formed in time to ensure a smooth transitions