Moreover, the Government has also formed and notified the new CPC. The recommendations made by the Commission will cover nearly 1.2 crore Central Government employees and Pensioners.

In January 2025, the Central Government announced the formation of the 8th CPC to review and recommend revisions to the salaries and other benefits of Central Government employees.

Who is in the panel of 8th Pay Commission?

Former Judge of the Supreme Court of India Justice Ranjana Prakash Desai has been appointed as the Chairperson of 8th CPC. Meanwhile, Pulak Ghosh, Professor, IIM Bangalore has been appointed Part-Time Member of the new Pay Commission. The Government has appointed Pankaj Jain, Secretary, Petroleum & Natural Gas Ministry as the Member-Secretary of the Pay Commission.

Timeline of new Pay Commission

In January 2025, the Central Government had announced formation of the 8th Central Pay Commission (8th CPC) to examine and recommend changes in Salaries and other benefits of Central Government employees.

The 7th Pay Commission's recommendations were approved within 6 months, which came in effect from January 1, 2016. If we consider the same timeline, the 8th Pay Commission likely to be implemented around 20 months from now.

The provisions of the 8th Pay Commission are expected to come into force from January 1, 2026, following the conclusion of the 7th Pay Commission's tenure. "Usually, the recommendations of the pay commissions are implemented after a gap of every ten years. Going by this trend, the effect of the 8th Central Pay Commission recommendations would normally be expected from 01.01.2026," the government had said.

Current salary for Central Government employees

Currently, Central Government employees and pensioners are paid under the 7th Pay Commission. As of now, the minimum basic pay for central government employees is Rs 18,000, while pensioners receive a minimum basic pension of Rs 9,000. Meanwhile, the maximum basic salary under 7th Pay Commission is Rs 2,25,000, while apex positions like the Cabinet Secretary and others receive Rs 2,50,000 per month. Under 7 CPC, fitment was set at 2.57. Moreover, the DA/DR currently stands at 58 per cent.

How salary hike is determined?

The basic formula for calculating revised salary based on a fitment factor is -- Revised Salary = Basic Pay × Fitment Factor. The fitment factor is a metric used by the government to determine the salaries and pensions of its employees and pensioners. Meanwhile, the central government may consider adopting the Aykroyd formula, developed by Dr. Wallace Aykroyd, to calculate wages. This formula estimates the ideal salary based on the minimum cost of living.

It focuses on the nutritional requirements of an average worker, taking into account essential costs such as food, clothing, and housing.

Salary hike under 8th Pay Commission

Considering experts prediction, the approved fitment factor under the 8th Pay Commission may be 1.8.

At the fitment factor of 1.8

• New minimum basic salary for employees - Rs 32,400
• New minimum basic pension for pensioners - Rs 16,200

Notably, this is the increase of 80 per cent in the salary and pension from the basic salary under 7th Pay Commission, excluding DA/DR.

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