With the 7th Pay Commission nearing the end, anticipation is building regarding the establishment of the 8th Pay Commission. So far, the government has maintained silence on the formation and timeline of the new Pay Commission. Central government employees are eagerly waiting for an official announcement on this matter. Speculation suggests that the government may announce the 8th Pay Commission in the forthcoming Union Budget for 2025-26.

Moreover, the National Council of the Joint Consultative Machinery may provide clarity and updates on the formation of the 8th Pay Commission in its upcoming meeting in December. Notably, the Confederation of Central Government Employees and Workers has decided to take a cautious stance. The organisation has opted for a “wait and watch” policy on the matter.

8th Pay Commission: What Central Govt Employees And Pensioners Can Expect?

Shiv Gopal Mishra, Secretary of the National Council of Joint Consultative Machinery, said that the upcoming Pay Commission is likely to announce a fitment factor of “at least 2.86”.

If the government approves the proposed 2.86 fitment factor, central government employees’ minimum salary may jump by a whopping 186% to Rs 51,480, a significant hike from the current Rs 18,000. Meanwhile, at the similar fitment factor, the minimum pension for these employees may rise from Rs 9,000 to Rs 25,740.

Furthermore, besides salary and pension revisions, it is anticipated that the dearness allowance (DA) or dearness relief (DR) and other benefits will also be revised and aligned with the new basic salary structure.

Additionally, as of April next year, the Central Government intends to launch a Unified Pension Scheme (UPS). Under this, pension calculations will be based on an employee’s average salary during the last year of service prior to retirement.