8th Pay Commission: Will Modi Government Fulfill the Demands of Central Government Employees?

The Finance Minister Nirmala Sitharaman has started the presentation of her record 7th time Union Budget in the Lok Sabha. The government has made several key announcements till now. It is highly expected that the Modi government will announce the formation of the 8th Pay Commission for central government employees. 

More than 49 lakh central government and around 67 lakh pensioners are eagerly waiting for the government to make the announcement. Modi government announced the formation of the 7th Pay Commission in the year 2016.

Demand of Central Government Employees

Central government employees are calling for an increase in the fitment factor from 2.57 to 3.68. This factor is a crucial multiplier used to determine salaries and pensions. For instance, the 2.57 fitment factor was used when updating salaries from the 6th Central Pay Commission to the 7th Pay Commission.

The 6th Pay Commission recommended a fitment factor of 1.86, while the 7th Pay Commission set it at 2.57. This change increased the minimum basic pay for central government employees from Rs 7,000 to Rs 18,000 per month, reflecting a 2.57-fold rise. Now, employees are requesting the government to raise the fitment factor to 3.68 to further improve their salaries and benefits.

Refer to the table below for a better understanding:

How Much Time Does It Take for Pay Commission to Submit Report?

Even if the Modi Government announces the formation of the 7th Pay Commission, it will take approximately 12 to 18 months for the commission to submit a report. During this time, the commission reviews different factors, including the current economic situation, to suggest changes to employee salaries and benefits.