8th Pay Commission: 108-186% or 20-30% - What will be the actual pay hike for central government employees?

The central government announced the 8th Pay Commission last month, after which more than 100 crore central employees and pensioners are waiting for a hike in salary and pension. News24 tried to find out in a recent interview how much salary hike can central government employees expect.

Central government employees are currently paid under the 7th Pay Commission, which has been in effect since 2016.

Former Finance Secretary of India Subhash Chandra Garg told News24 in an exclusive interview that the government may approve a fitment factor of 1.92-2.08 under the next pay commission. However, Shiv Gopal Mishra, secretary, of NC-JCM (National Council - Joint Consultative Machinery), said, "I think it (fitment factor) should be 2.86. The staff side of NC-JCM and other experts are working on it."

8th Pay Commission: What will be the actual hike in pay?

Garg said, "Currently, the DA is 53% (as of July 1, 2024). To calculate the DA as of January 1, 2026, two more installments need to be added: one due on January 1, 2025, and the other on July 1, 2025. Assuming a 7% hike, the DA for January 1, 2026, will be around 60%."

"Usually, pay commissions have recommended hikes ranging from 15% to 30%. The previous pay commission had recommended a hike of around 14-15%," he added.

Garg estimated that the government may approve a 20-30% hike on the existing pay which includes basic pay and dearness allowance (DA). The calculation assumes DA is 60% at the time of implementation of the 8th Pay Commission. The basic minimum pay for central government employees under the 7th Pay Commission is Rs 18,000 per month.

Rs 18,000 + DA (at the time of implementation of the new pay commission), thus the minimum pay (basic pay + DA) of central government employees becomes Rs 28,800 when the new pay commission comes into effect.

Expected new minimum basic pay under the 8th Pay Commission

At 1.92 fitment: Rs 34,560 (20% actual increase over the current pay, which includes basic pay + DA).

At 2.08 fitment: Rs 37,440 (30% actual increase over the current pay, which includes basic pay + DA).

Also, at 2.86 fitment: Rs 51,480 (approx 80% actual hike over current pay, which includes basic pay + DA).

However, if we exclude DA, at 1.92 fitment factor this hike will be 92%, at a fitment factor of 2.08 it will be 108% and at a fitment factor of 2.86 it will be 186%. It is worth mentioning that in real world this hike can be between 20-80%. Most likely it will be around 20-30%.

This news has been sourced and edited from news24online.