As the 7th Pay Commission, which was implemented in 2016, is nearing the end of its decade-long tenure in January 2026, the hottest debate right now is about the next pay commission. The wait for the 8th Pay Commission has Central government employees eagerly watching for updates.
The 7th Pay Commission was established in February 2014 during the Manmohan Singh government. Its recommendations brought significant revisions to salaries and pensions. However, with its term ending inJanuary 2026, attention has shifted to the next panel. In the past, a new pay commission used to be set up every 10 years to review and adjust government employees’ basic salaries. Let’s understand what all considerations will be taken into account.
Fitment Factor Crucial for Salary Hikes
A key aspect of every pay commission is the fitment factor, which determines the extent of salary and pension increases. Under the 7th Pay Commission, the fitment factor was set at 2.57, raising the minimum salary from Rs 7,000 to Rs 18,000.
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Employee unions, however, had demanded a higher fitment factor of 3.67, but it wasn’t approved. For the 8th Pay Commission, unions expect at least a 2.86 fitment factor. Shiv Gopal Mishra, Secretary (staff side) of the National Council of Joint Consultative Machinery (JCM), recently emphasised this demand.
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If the 2.86 fitment factor is adopted, salaries and pensions could see substantial hikes. The minimum salary of government employees could rise to Rs 51,480, compared to the current Rs 18,000. Similarly, pensions might increase to Rs 25,740, a significant jump from Rs 9,000.
Adhil Shetty, CEO of Bankbazaar.com, says, “The government implements Pay Commissions to help adjust salaries to counter the effects of inflation by revising pay structures. They analyse economic indicators like inflation rates,
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