• Source:JND
Add as a preferred

8th Pay Commission News: The Central Government is getting ready to set up the Eighth Central Pay Commission (8th CPC) well ahead of the current pay structure's expiration in December 2025. This decision is poised to affect millions of central government employees and pensioners, with hints that the fitment factor—a crucial element in salary and pension calculations—might be increased to 2.86, which could boost minimum pensions by as much as 186%.

An official circular from the Department of Expenditure under the Ministry of Finance, dated April 21, reveals that 42 new posts are being created. This has led to speculation that these roles are linked to the formation of the new Pay Commission. This administrative move echoes what happened during the setup of the Seventh Pay Commission, when 45 appointments were made just before it was established.

Reports indicate that the chairman of the 8th CPC has already been chosen, and a formal gazette notification is anticipated soon. Earlier this year, in January 2025, the government announced its intention to form the new commission in time for its recommendations to take effect from January 1, 2026.

Also Read: FPIs Infuse Rs 4,223 Crore In April In Equity Market; Returns As Net Buyers First Time In Three Months

Employee Unions Demands Better Fitment Factor

Employee unions are actively advocating for a higher fitment factor than the current 2.57 set by the 7th Central Pay Commission. If the proposed 2.86 multiplier gets the green light, the minimum pension—which is now Rs 9,000—could see a significant jump to about Rs 25,740.

The fitment factor also has a direct impact on the salaries of current government employees at all pay levels, and any changes could result in a notable increase in their earnings. Pensioners at higher levels are also expected to gain considerably if these proposed adjustments are approved.

The 8th Pay Commission is set to carry out a thorough review of pay scales, allowances, and pension structures, focusing particularly on the rising cost of living and the concerns raised by staff associations.

With general elections on the horizon, the timely establishment of the commission and announcements regarding employee welfare could also hold political weight for the ruling government.

Also Read: Upcoming IPOs: Veritas Finance, Laxmi India Finance, 3 Others Get Sebi Nod To Float IPOs; Details