8th Pay Commission timeline: What history of pay panels reveals? EXPLAINED by ETNOW
The Central Government stated that it is “actively consulting” state governments on the 8th Pay Commission and indicated that an announcement regarding the constitution of the panel can be expected soon.
8th Pay Commission : The central government approved the 8th Central Pay Commission in January 2025, but the official notification has not yet been issued. Additionally, the members and Chairman of the new Pay Commission are yet to be finalised.
Salary hike under 8th Pay Commission
Over 1 crore Central Government employees and pensioners are eagerly waiting for the official notification of 8th CPC . Notably, the fitment factor will decide the salary/pension hike for the Central Government employees and pensioners.
Under the 7th Pay Commission , the central government employees are entitled to the minimum basic salary of Rs 18,000, whereas the pensioners get the minimum basic pension of Rs 9,000.
Adding to this, they get a DA/DR at 58 per cent rate, under the 7th Pay Commission.
What is Fitment Factor?
The fitment factor is a metric used by the government to determine the salaries and pensions of its employees and pensioners. Meanwhile, the central government may consider adopting the Aykroyd formula, developed by Dr. Wallace Aykroyd, to calculate wages. This formula estimates the ideal salary based on the minimum cost of living.
It focuses on the nutritional requirements of an average worker, taking into account essential costs such as food, clothing, and housing.
8th Pay Commission Timeline
The Central Government stated that it is “actively consulting” state governments on the 8th Pay Commission and indicated that an announcement regarding the constitution of the panel can be expected soon.
The Minister of State in the Finance Ministry, Pankaj Chaudhary, recently told the Rajya Sabha that the official notification regarding the 8th Central Pay Commission would be issued in due course.
On the appointment of members and Chairman of the new Pay Commission, Chaudhary said that they will be appointed once the 8th Pay Commission is notified by the Government. “Official notification would be issued in due course. The Chairperson and Members of the 8th CPC would be appointed once the 8th CPC is notified by the Government,” he said.
However, the government hasn’t yet declared any official timeline for the 8th CPC. Reason of delay already speculated
What history of pay panels reveals?
The 1st Pay Commission functioned from May 1946 to May 1947, followed by the 2nd Pay Commission from August 1957 to August 1959. The 3rd Pay Commission worked between April 1970 and March 1973, while the 4th Pay Commission operated from September 1983 to December 1986. The 5th Pay Commission was in place from April 1994 to January 1997 and the 6th Pay Commission from October 2006 to March 2008. The 7th Pay Commission functioned between February 2014 and November 2016.
Notably, the 8th Pay Commission was announced on January 16, 2025.
New potential salary hike under 8th Pay Commission
At the fitment factor of 1.92
New minimum basic salary for employees – Rs 34,560
New minimum basic pension for pensioners – Rs 17,280
At the fitment factor of 2.08
New minimum basic salary for employees – Rs 37,440
New minimum basic pension for pensioners – Rs 18,720
However, DA/DR would be reset to zero once the 8th Pay Commission is implemented.
Source: ET NOW
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