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8th Pay Commission: 7th CPC Pay Hike Was Lowest Since 1970, 8th CPC Salary Hike To Be Even Lower? Reports Hint At...

8th Pay Commission: 7th CPC Pay Hike Was Lowest Since 1970, 8th CPC Salary Hike To Be Even Lower? Reports Hint At...

India.com6 days ago
photoDetails english 2935494 https://zeenews.india.com/photos/business/8th-pay-commission-7th-cpc-pay-hike-was-lowest-since-1970-8th-cpc-salary-hike-to-be-even-lower-reports-hint-at-2935519 Updated:Jul 23, 2025, 08:56 AM IST 8th Pay Commission Expected Salary Hike
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The 8th Pay Commission is expected to recommend a subtle salary and pension hike for central government employees, which could be lower than the pay hike announced under the 7th Pay Commission. According to a report by Kotak Institutional Equities, central government employees may receive an effective salary hike of 13% vis-a-vis pay hike of 14.3 percent under 7th Pay Commission. The 7th Pay Commission (January 2016 - December 2025) had implemented a modest salary hike, which was lowest since 1970. 8th Pay Commission: Expected Fitment Factor
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The fitment factor could be set at 1.8 percent under 8th Pay Commission, lower than the 2.7 perecent fitment factor announced under the 7th Pay Commission. Although the 1.8 fitment factor translates into 80% hike in basic pay (current basic pay multiplied by 1.8% fitment factor, the effective hike could go up by only 13% because the dearness allowance (DA) --which is currently at 55 percent --will be reset to zero once the new pay structure is implemented under the 8th Pay Commission. 8th Pay Commission: FinMin Response In Lok Sabha
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The Finance Ministry recently responded to questions pertaining to 8th Central Pay Commission (CPC) in Lok Sabha. The response by Minister of State in the Ministry of Finance Pankaj Chaudhary on July 21, 2025 touched upon the questions posed by Members of Parliament, TR Baalu and Anand Bhadauria, regarding updates on formation of the pay panel; appointment of Chairperson and other members; Terms of Reference; and implementation of new pay scales. Constitution And Timeline Of 8th Pay Commission
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On Constitution of 8th Pay Commission Minister of State in the Ministry of Finance Pankaj Chaudhary replied Lok Sabha: It has been decided by the government to constitute the 8th Central Pay Commission (CPC). Inputs have been sought from major stakeholders, including Ministry of Defence, Ministry of Home Affairs, Department of Personnel & Training and from states.
On timeline of members, chairperson appointment she said: The chairperson and members of the 8th CPC would be appointed once the 8th CPC is notified by the Government. 8th Pay Commission Implementation
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On implementation of 8th Pay Commission Chaudhary said: Implementation would be taken up once the recommendations are made by the 8th CPC and are accepted by the government. 8th Pay Commission For Salary Pension, Allowance Revision
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The 8th Pay Commission will revise the pensions, allowances and salaries of central government employees and pensioners. It will also revise the Dearness Allowance as per inflation. The 8th Pay Commission benefits about 50 lakh central government employees, including defence personnel. It will also benefit around 65 lakh central government pensioners, including defence retirees. 8th Pay Commission: January 2026 Implementation Prospects Bleak
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The prospects for the Commission's implementation on January 1, 2026, appear bleak. While the tenure of the 7th Pay Commission ends on 31 December 2025 and the constitution of the new Commission is in limbo, the central government employees and pensioners are increasingly becoming anxious. 8th Pay Commission Tor Delay Causes Anxiety
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According to the Staff Side, the continued delay in the formal issuance of the ToRs has led to widespread speculation and uncertainty among central government employees and pensioners. It further stated that in the absence of clear and timely communication, apprehensions are growing among employees about the credibility of the announcement regarding the setting up of the 8th CPC. Many fear whether this move is a genuine administrative initiative or otherwise. ToR, Chairman Appointment: 7th Pay Commission Vs 8th Pay Commission Timeline Compared
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The 7th CPC was announced in September 2013 and its chairman and ToR were notified in February 2014. However, since the announcement of the 8th Pay Commission on January 16, 2025, the ToR of the Commission are still pending. The government has also not officially announced the appointment of the chairman and other members of the commission. This indicates a delay in the formation of the 8th CPC. Pay Commission In Every 10 Years
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The Central Pay Commissions are normally established once every ten years to review and recommend changes to pay scales, allowances and benefits for central government employees. Implemented in 2016, the 7th Pay Commission will remain in effect till 2026. More than one crore central government employees and pensioners are looking forward to the formation of the 8th Pay Commission, which will revise their basic pay, allowances and pension.
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