The 8th Pay Commission is predicted to come into existence in 2026, but we’re still waiting for an official announcement from the government. Check out what earlier pay commissions recommended.
8th Pay Commission Update: The salaries of central government employees in India have undergone significant revisions with the recommendations of various central pay commissions, established to address inflation with the passage of time. Since the first pay commission was launched by the central government in the year 1946, the continuous critical reviews have played a very crucial rule in ensuring fair compensation in India.
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With rise in inflation and change in economic structure, the 5th, 6th, and 7th Pay Commissions brought significant reforms in the salary structure of central government employees in India that reshaped the financial landscape for millions. As discussions about the 8th Pay Commission gain momentum in the country, this article explores the key changes introduced by the previous commissions and the expectation around it.
5th Pay Commission: History And Recommendations
Establishment: April 1994
Implementation: January 1996
Minimum Basic Salary: Rs 2,750
Key Recommendations:
- Reduction of pay scales from 51 to 34.
- Increase in gratuity ceiling from Rs 2.5 lakh to Rs 3.5 lakh.
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6th Pay Commission: History And Recommendation
Establishment: July 2006
Approval: August 2008
Minimum Basic Salary: Rs 7,000
Fitment Factor: Initially recommended at 1.74, later increased to 1.86 by the government.
Key Recommendations:
- Back pay effective from January 1, 2006.
- Allowances effective from September 1, 2008.
- Increase in cost of living allowance (DA) from 16% to 22%.
7th Pay Commission: History And Recommendation
Formation: February 28, 2014
Implementation: January 1, 2016
Minimum Basic Salary: Rs 18,000
Fitment Factor: 2.57
Key Recommendation:
Minimum basic pay increased from Rs 7,000 to Rs 18,000.
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8th Pay Commission: Expectations
The 8th Pay Commission is predicted to come into existence in 2026, but we’re still waiting for an official announcement from the government. The expected salary hike might lie between a 20% to 35% increase, which could potentially take Level 1 salaries to around Rs 34,560 and push Level 18 salaries as high as Rs 4.8 lakh.
There’s also good news for employees and pensioners, as retirement benefits are expected to become more lucrative and several allowances are set to be adjusted. Moreover, reports suggest a fitment factor of 1.92 will likely be used to craft the pay matrix for the 8th Pay Commission.
