In October, the Narendra Modi government gave a big Diwali gift by increasing the dearness allowance (DA) of central employees by 3%. Now, another good news for central employees is being reported. It is said that the government may announce a substantial salary hike in the new year. According to several media reports, if the government approves a fitment factor of 2.86 under the 8th Pay Commission, the minimum wage for employees could increase by 186%. Currently, employees receive a basic salary of Rs 18,000 per month under the 7th Pay Commission, which could rise to Rs 51,480.
Shiv Gopal Mishra, secretary of the National Council of Joint Consultative Machinery (NC-JCM), has stated that the government may decide on a fitment factor of 2.86. This would be slightly higher than the 7th Pay Commission's fitment factor of 2.57. If approved, employees' salaries will see a substantial increase, and their pensions could also rise by 186%. Currently, the pension is Rs 9,000 per month, which could be increased to Rs 25,740.
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The 7th Pay Commission, which came into effect in 2016, is typically updated every 10 years, with the next update due in 2026. While the date for the implementation of the 8th Pay Commission has not been fixed, reports suggest that an announcement may be made in the 2025-26 budget. A decision could be made by December 2024 at the meeting of the National Council of Joint Consultative Machinery.
The 7th Pay Commission was established in February 2014, and its salary structure was implemented from January 1, 2016. This commission increased the minimum wage for employees from Rs 7,000 to Rs 18,000 and introduced several other benefits.