8th Pay Commission 2025: Will bank employees' salaries also increase? What do the rules say? Understand everything..

8th Pay Commission 2025: Discussion about the Eighth Pay Commission has once again intensified. The central government has prepared its Terms of Reference (ToR), and it is believed that this commission could be implemented from January 2026. This is expected to result in a significant salary increase for approximately 5 million central government employees. But the biggest question now is: will the salaries of government bank employees also increase?

Who decides the salaries of bank employees?
Indeed, millions of people work in government banks across the country, and many believe that they too will be covered by the 8th Pay Commission. However, this is not the case. Government banks are not directly under the purview of the Central Government's Pay Commission. Their salaries and pensions are determined by a bipartite settlement between the Indian Banks' Association (IBA) and unions. This means that bank employees will not be affected by the 8th Pay Commission.

The 8th Pay Commission for central employees is headed by former Supreme Court Justice Ranjana Prakash Desai. The Commission is required to submit its recommendations to the government within 18 months. The pay revision will only be implemented after these recommendations are approved.

Fitment Factor Plays a Key Role
Now, regarding salary increases, the Fitment Factor plays a crucial role. It was 2.57 in the 7th Pay Commission, while it is expected to increase to 2.86 in the 8th Pay Commission. If this happens, an employee's current basic salary could increase from ₹25,000 to ₹71,500.

So, when will bank employees' salaries increase?
This is good news for government employees, but bank employees will have to wait. Their salaries are decided through a separate process. However, bank unions are also now demanding that they should be included in a common pay framework in the future, so that they can also get the benefit of a hike like government employees.

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