KKN Gurugram Desk | The Union Cabinet has given the green light to the 8th Pay Commission, paving the way for significant salary hikes for nearly 50 lakh Central government employees. The announcement, made by Union Minister Ashwini Vaishnaw, comes just days before the presentation of the Budget 2025.

Expected Salary Hike under the 8th Pay Commission

The 8th Pay Commission will focus on revising the basic pay and Dearness Allowance (DA) of government employees. Although specific details about the percentage of salary hikes are yet to be revealed, it is anticipated that the fitment factor—a key multiplier used to calculate salaries and pensions—could increase from 2.57 to 2.86.

• Proposed Minimum Basic Pay:
  If the fitment factor reaches 2.86, the minimum basic pay could rise from ₹18,000 to ₹51,480.

Salary Hikes Across Previous Pay Commissions

7th Pay Commission (2016)

• The fitment factor was 2.57, leading to a significant salary increase.
• Basic pay was multiplied by 2.57 for all government employees and pensioners.

6th Pay Commission (2006)

• The fitment factor was 1.86, which resulted in a basic pay increase by the same multiplier.

5th Pay Commission (1996)

• A 40% increase was applied to the basic pay in the existing scale.

What Does a Pay Commission Do?

A Pay Commission is appointed by the government to:

• Review and recommend revisions to the salary structure of government employees.
• Address factors such as inflation, economic conditions, and income disparities.
• Assess and propose changes to bonuses, perks, allowances, and other benefits.

The recommendations aim to ensure that government employees’ compensation aligns with the current economic environment.

8th Pay Commission Salary Hike: Key Takeaways for Employees

• Union Cabinet Approval: Officially approved ahead of Budget 2025.
• Potential Fitment Factor Increase: From 2.57 to 2.86.
• Expected Minimum Basic Pay: Could increase to ₹51,480.