The central government, last week, approved the formation of 8th Pay Commission, which would recommend a new fitment factor and other modalities to revise central government employees salaries. The announcement was made by Union Minister Ashwini Vaishnaw, with Prime Minister Narendra Modi also sharing the update on social media.
“We are all proud of the efforts of all government employees, who work to build a Viksit Bharat. The Cabinet's decision on the 8th Pay Commission will improve quality of life and give a boost to consumption,” PM Modi had tweeted.
We are all proud of the efforts of all Government employees, who work to build a Viksit Bharat. The Cabinet's decision on the 8th Pay Commission will improve quality of life and give a boost to consumption. https://t.co/4DCa5skxNG
January 16, 2025Currently, the salaries of central government employees are based on the 7th Pay Commission. The term of the 7th Pay Commission will end in 2026, and subsequently, the recommendations of 8th Pay Commission are expected to be implemented.
1st To 7th Pay Commission, How Salaries Have Increased
Since Independence, there have been as many as seven pay commissions, with the first one being implemented in 1947. The 7th Pay Commission was implemented in 2016. Here is a summary of how central government employees' salaries have increased under different pay commissions.
In the 1st Pay Commission, the minimum basic salary was Rs 55, while the maximum was Rs 2,000. After several revisions over the years, the government implemented the 7th Pay Commission in 2015, which raised the minimum basic pay to Rs 18,000. The maximum basic pay under the 7th Pay Commission is Rs 2.25 lakh.
So, what do you think employees' salaries were between 1st Pay Commission to 7th Pay Commission? Check the table below:
The compression ratio in the above chart refers to the ratio of the highest salary earned by the secretary to the Government of India to the lowest salary earned by an employee in the central government.
The biggest jump in salaries came in the 6th Pay Commission, when employees received a 54% hike in their basic pay.
While the pay commissions are implemented once in 10 years, the central government employees are provided with an increase in dearness allowance (DA) around every six months. The increase in DA is aimed at offsetting the impact of inflation.
With the last DA increase of 3% in Oct. 2024, the allowance reached 53% of the basic salary set under the 7th Pay Commission. The demand for the formation of 8th Pay Commission picked up pace ever since the DA crossed 50% of the basic salary.
Notably, the 8th Pay Commission may require time beyond Jan. 1, 2026 to submit its report, as the panel would be required to hold deliberations with all stakeholders. Employee unions expect the government to roll out arrears from January 2026 onwards if the implementation of 8th Pay Commission gets delayed.
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