Union Cabinet approves 8th Central Pay Commission | What does it mean?
PTC Web Desk: The Union Cabinet has officially approved the formation of the 8th Pay Commission, a long-awaited move that is set to benefit countless central government employees and pensioners. The announcement was made by Union Minister Ashwini Vaishnaw on Thursday.
Pay commissions are typically constituted every 10 years to determine the fitment factor and establish guidelines for revising salaries of government employees and pensions for retirees.
The previous 7th Pay Commission was formed in February 2014 under the leadership of then-Prime Minister Manmohan Singh. Its recommendations, which significantly impacted salary structures, were implemented starting January 2016. This latest announcement addresses persistent demands from employee unions and staff associations, who have been advocating for the 8th Pay Commission to ensure salary revisions take effect from January 2026.
The formation of the 8th Pay Commission is expected to address wage disparities and provide financial relief to millions of employees and pensioners across the nation.
The 8th Pay Commission is poised to further enhance the salary structure of government employees, continuing the reforms introduced by the 7th Pay Commission. With the current recommendations set to be finalised by the end of 2025, a committee established by the Central government is overseeing the implementation process.
One of the key changes anticipated is an increase in the fitment factor, from the current 2.57 to 2.86. This adjustment, if approved, would directly impact the basic salaries of government employees, providing a substantial increase in their pay. The fitment factor is a critical component in determining how the basic pay is multiplied to calculate revised salaries and pensions.
The pay structure for government employees has undergone significant changes over the years, with each Pay Commission introducing crucial reforms. The 7th Pay Commission, implemented in January 2016, replaced the previous pay bands and grade pay system with a simpler pay matrix. This move marked a departure from the older system, which had been in place since the 6th Pay Commission in 2006.
Under the 7th Pay Commission, the minimum monthly pay was set at Rs 18,000, while the maximum for Cabinet Secretaries was Rs 2.5 lakh. The fitment factor was set at 2.57 times the basic pay, leading to a significant increase in the salaries of government employees. Additionally, the gratuity ceiling was raised to Rs 20 lakh, and allowances such as House Rent Allowance (HRA) were rationalised to ensure better financial benefits for employees.
Reforms from the 6th Pay Commission
The 6th Pay Commission, introduced in 2006, brought in the pay band and grade pay system, with the minimum pay set at Rs 7,000 and the maximum for secretary-level officers pegged at Rs 80,000. The fitment factor under the 6th Commission was 1.86 times the basic pay. It also revised the gratuity ceiling to Rs 10 lakh and rationalised allowances to enhance the benefits, including HRA.
These reforms laid the foundation for the forthcoming changes under the 8th Pay Commission, which is expected to further boost the income of government employees, enhancing their financial security.
- PTC NEWS
