In a pre-Budget meeting with Finance Minister Nirmala Sitharaman, 10 Central Trade Unions and the Bharatiya Mazdoor Sangh urged the central government to establish the 8th Pay Commission without further delay. Central government employees are demanding the implementation of the 8th Pay Commission to address their concerns regarding salary hikes and other benefits.

Earlier, government employees were hopeful that the announcement regarding the establishment of the new Pay Commission will be made during the Budget in February 2025. However, the Finance Ministry’s recent statement in the Rajya Sabha that there are no plans to establish a new Central Pay Commission as yet left over 1 crore central government employees and pensioners in disappointment.

8th Pay Commission: What About 186% Salary Hike?

Shiv Gopal Mishra, secretary of the National Council of Joint Consultative Machinery (NC-JCM), has generated the buzz among central government employees when he recently said that the next Pay Commission may propose a fitment factor of at least 2.86, which could lead to a significant 186% salary hike.

If the central government says OK to this proposed fitment factor, the central government employees’ minimum basic salary may jump from Rs 18,000 to Rs 51,480. Furthermore, at this fitment factor, pensioners’ pensions could increase from Rs 9,000 to Rs 25,740.

What Else?

According to several media reports, the central government is considering a major overhaul of its salary and pension revision process. Reports suggest that instead of relying on the traditional Pay Commission framework, the government may introduce a new mechanism that takes into account employees’ performance and inflation rates.

Media reports said that this significant shift could potentially forgo the Pay Commission framework, which has been in place for decades. The goal is to create a more dynamic and responsive system.