The Indian government might completely forgo the 8th Pay Commission, potentially abandoning the pay panel system altogether, impacting over 1 crore central government employees and pensioners. “The government is thinking of a different way to revise salaries and pensions for central employees and pensioners instead of setting up a new pay commission like before,” media reports quoted the source, who has been privy to all the recent meetings between the government and employee representatives.

Earlier, the media reports suggested that the Indian government may consider a major overhaul of its compensation structure for government employees. The government may instead of relying on pay commissions, which typically review and recommend salary and pension changes every 10 years, might introduce a new mechanism. Moreover, the new mechanism will consider performance and inflation as the matrix to revise the salaries and pensions of the central government employees and pensioners.

Notably, the union finance ministry recently clarified in Parliament that the government is not currently considering a proposal to establish the 8th Central Pay Commission.

8th Pay Commission: 186% Salary Hike In Danger?

Shiv Gopal Mishra, secretary of the National Council of Joint Consultative Machinery (NC-JCM), has sparked the hopes when he recently mentioned that the next Pay Commission may consider a fitment factor of “at least 2.86”. This may lead to a significant 186% salary hike for the central government employees.

If the government OKs this case, the minimum basic salary of central government employees could jump from Rs 18,000 to a Rs 51,480. Additionally, pensioners’ pension could potentially rise from Rs 9,000 to Rs 25,740 at this fitment factor.

However, with the latest developments, the potential 186% salary hike now looks in danger, at least as of now.