8th Pay Commission: How much will salary of govt employees go up by? Details

About 50 lakh central government employees and 65 lakh pensioners will thus benefit this from the pay revision, according to an NDTV report which cited American investment bank Goldman Sachs.

The Pay Commission is a government-appointed body which reviews and recommends salary, pension, and benefits revisions for central government employees and pensioners in the country usually every 10 years, considering economic conditions, inflation, and the cost of living.

The expected salary increase can also vary depending upon the budget allocations. So for a mid-level government employee who earns ₹1 lakh per month before taxes, the expected salary increase could be as follows, as per the report:

• ₹1.75 lakh crore budgetary allocation: The salary may increase to ₹1,14,600 per month.
• ₹2 lakh crore budgetary allocation: The salary may increase to ₹1,16,700 per month.
• ₹2.25 lakh crore budgetary allocation: The salary may increase to ₹1,18,800 per month.

The panel may get constituted in April 2025, with its recommendations coming into effect by the years 2026 or 2027, according to the report.

The fitment factor (used to calculate the salary hike) was increased by 2.57 times in the previous 7th Pay Commission, which was implemented in 2016, raising the minimum basic salary from ₹7,000 to ₹18,000.

The 8th Pay Commission will also consult employee unions and other stakeholders to decide this fitment factor and the unions are expected to demand a fitment factor of 2.57 or higher, according to the report.

However, former Finance Secretary Subhash Chandra Garg had suggested in January that this might be unrealistic and predicted a fitment factor closer to 1.92.