Fri Jan 17 08:42:55 UTC 2025: ## India Approves Formation of 8th Pay Commission for Central Government Employees
**New Delhi, India** – The Indian government has approved the formation of the 8th Pay Commission, which will review and revise salaries for 48.67 lakh central government employees and 67.95 lakh pensioners. The announcement was made Thursday by Minister Ashwini Vaishnaw following a cabinet meeting chaired by Prime Minister Narendra Modi.
The current 7th Pay Commission is set to expire on December 31, 2025. The 8th Pay Commission is tasked with submitting its report by 2026. The government will consult with state governments and Public Sector Undertakings (PSUs) before appointing a chairperson and two members to the commission. Their names are expected to be announced soon.
The process of forming and implementing a new pay commission typically occurs every ten years. The 7th Pay Commission was implemented in 2016, the 6th in 2006, and similar ten-year intervals have been observed for previous commissions.
A significant increase in basic salaries is anticipated. Speculation suggests a potential increase in the “fitment factor” from 2.57 to 2.86. This could lead to a substantial rise in basic salaries. For instance, if the fitment factor increases to 2.86, the minimum basic salary could jump from ₹18,000 to ₹51,480. Similarly, minimum monthly pensions could rise from ₹9,000 to ₹25,740. The fitment factor plays a crucial role in determining revised basic salaries and pensions.
The implementation of the 7th Pay Commission in 2016 saw a considerable increase in salaries, raising the minimum basic salary from ₹7,000 to ₹18,000 due to a rise in the fitment factor to 2.57. The 8th Pay Commission is expected to bring about similarly significant changes.
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