Fri Jan 17 07:02:52 UTC 2025: ## Modi Government Announces 8th Pay Commission, Boosting Salaries and Pensions for Millions
**New Delhi, India** – The Modi government has announced the formation of the 8th Pay Commission, bringing a significant pay raise for over 12.5 million central government employees and pensioners. The new commission will take effect in January 2026, following the expiration of the current 7th Pay Commission. This will result in substantial increases in both salaries and pensions, particularly impacting retired employees.
Salary and pension increases are determined by a “Fitment Factor.” The 7th Pay Commission utilized a factor of 2.57, raising the minimum basic salary from ₹7,000 to ₹18,000 and the minimum pension from ₹3,500 to ₹9,000. The maximum basic salary reached ₹2.5 lakh, and the maximum pension reached ₹1.25 lakh.
Employee unions are advocating for a Fitment Factor of 2.86 in the 8th Pay Commission. However, the government is expected to implement a factor of 1.92. This would increase the minimum basic salary to ₹34,560 (from ₹18,000) and the minimum pension to ₹17,280 (from ₹9,000). A 2.86 factor would result in even higher increases, potentially reaching ₹51,480 for minimum salary and ₹25,740 for minimum pension.
The 8th Pay Commission is expected to significantly improve the financial well-being of government employees and pensioners, impacting both their current salaries and their retirement benefits.
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