With the 10-year term of the 7th Pay Commission coming to an end, speculation has increased on the establishment of the 8th Pay Commission. About 12 million central government employees and pensioners are eagerly waiting for two major announcements, the establishment of the new pay commission and the anticipated increase in pension and salary. The government has not made any official announcement about the timeline for setting up the 8th Pay Commission. Several media reports suggest that the 8th Pay Commission is going to be implemented soon. The 7th Pay Commission is likely to end on December 31, 2025, paving the way for the formation of the 8th Pay Commission.

8th Pay Commission: What fitment factor is expected to determine the minimum wage?

Shiv Gopal Mishra, secretary of the National Council of Joint Consultative Machinery, expects a fitment factor of "at least 2.86" for pay and pension revision in the upcoming 8th Pay Commission, reports NDTV.

With the proposed fitment factor of 2.86, the minimum basic pay for central government employees is expected to increase from the current Rs 18,000 to Rs 51,480. If the fitment factor is set at 2.86, the pension of central government employees will increase from Rs 9,000 to Rs 25,740.

Similarly, the fitment factor was recommended at 2.57 in the 7th Pay Commission. This would increase the minimum pay of central government employees from Rs 7,000 to Rs 18,000.

Reacting to media reports that suggested a possible hike in the minimum wage to Rs 34,000-35,000, Mishra said, "There is no basis for such claims. These may be individual demands of some trade unions, but as far as the employee side of NC-JCM is concerned, we will demand a fixed fitment factor and it will not be less than 2.86."

Notably, the formation of the pay commission is the beginning of the process of revising the basic pay of employees. Once set up, the primary function of the commission is to engage with all stakeholders, collate valuable insights and feedback, and submit a report to the government.