The newly-formed Narendra Modi 3.0 government, with 30 Cabinet Ministers sworn in on Sunday, faces significant expectations, including the potential formation of an 8th Pay Commission. Although several media reports suggest that discussions about the 8th Pay Commission may begin soon, there has been no official confirmation. Speculation is rife that the Modi government might make a major announcement regarding this by next year.
The 8th Pay Commission will be tasked with submitting recommendations to the central government concerning salary increases for government employees. If implemented, over a crore government employees and pensioners will benefit. Historically, the central government has introduced a new pay commission every decade, with the 7th Pay Commission coming into effect in January 2016. Thus, it is anticipated that the 8th Pay Commission will likely be implemented starting January 2026.
Sources indicate that the 8th Pay Commission should be constituted in 2025. Experts predict that this could lead to a substantial salary increase for central government employees, with several changes expected, including adjustments to the fitment factor.
The fitment factor, which currently stands at 2.57, is expected to increase to 3.68. This change would raise the minimum basic salary of government employees from Rs 18,000 to Rs 26,000, resulting in a significant boost of Rs 8,000 to their basic pay.