The announcement regarding the formation of the 8th Pay Commission was made in January 2025, and ever since, government employees are in a state of anxiety with regard to its implementation. Amid such rumors, the government went public with its announcement that the 8th Pay Commission shall be operative from January 1, 2026. Nothing more has been said about the time frame for the actual formation. However, looking at past trends, one can conjecture the formation of the committee within a few months of this announcement. We inform you that the official announcement regarding the 8th Pay Commission was made public on January 17, 2025.
When Will The 8th Pay Commission Be Put In Place?
When looking into history, the formations of pay commissions have followed varied time schedules. David Babu, managing partner and legal expert of Accord Juris, gave us an insight into the timelines of various pay commissions.
- 5th Pay Commission- Approved in April 1994 and formally constituted in June 1994, that is, only a delay of two months.
- 6th Pay Commission- Announced in July, 2006 and constituted in October of 2006; thus it took about three months.
- 7th Pay Commission- Announced on 25 September 2013 and formally constituted on February 28, 2014; thus a gap of about five months.
It is thus quite evident that the committee is formed within some months following the declaration. Although there are no fixed timelines for this, by guessing, it can be said that it should, following the path of its predecessors, be likely formed in the March-July 2025 time frame.
What Is Pay Commission For?
The experts give insight that the government forms a new pay commission at least once every decade to assess the salary structure, pension and allowances of government employees. Their recommendations will depend on the economy, situation, inflation, and other financial concerns, so that they ensure compensation to employees are justifiable. The major focus now is when the government formally constitutes the 8th Pay Commission with the forthcoming one that will be implemented in 2026. This decision will benefit millions of central government employees and pensioners.
The Current Assumption Regarding The Increase In The Fitment Factor
The fitment factor is what determines salary hikes. The 7th Pay Commission saw this component placed at 2.57, whereby hypothecating the basic salary of Level-1 employees from Rs 7,000 to Rs 18,000. Thus, with D.A., H.R.A., and Transport Allowance, the total salary rounded off to Rs 36,020. However, if the fitment factor does go up, as is being predicted, up to 2.86 in the 8th Pay Commission, then it follows that the basic pay in Level-1 would rise from Rs 18,000 to Rs 51,480.
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