8th Pay Commission for central government employees: What did the government say about the constitution of committee in Parliament?
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Expected salary hikes after 8th Pay Commission for government employees
The government has officially confirmed its decision to constitute the 8th Central Pay Commission (8th CPC) for central government employees. The move is expected to impact the pay structure and pensions of lakhs of government servants and pensioners across the country. Central government employees are awaiting the government's announcement of a committee to review their salaries, pensions, and other allowances. The Members of Parliament T.R Baalu and Anand Bhadauria asked the government about the progress on the constitution of the committee for the 8th Pay commission. According to the government's reply, inputs have been sought from the major stakeholders. Chairperson and members of the 8th Pay commission would be appointed once the 8th CPC is notified by the government. The government is yet to announce a committee and terms of reference for the same.ET Wealth Online tells you in detail the questions asked by the Members of Parliament on the 8th Pay Commission and government's reply on the same.Parliamentarians T.R Baalu and Anand Bhadauria, Members of Lok Sabha, asked the following questions to the government:Whether the government has formally notified the constitution of the 8th Central Pay Commission, following its announcement in January 2025.(b) if so, the details thereof and if not, the reasons for not setting up it after lapse of six months;The government in the Parliament replied, 'It has been decided by the Government to constitute the 8th Central Pay Commission (CPC). Inputs have been sought from major stakeholders, including the Ministry of Defence, Ministry of Home Affairs, Department of Personnel & Training and from States.'(c) The time by which the Chairperson and Members of the 8th CPC would be appointed along with the terms of reference of the Commission?The government replied: The Chairperson and Members of the 8th CPC would be appointed once the 8th CPC is notified by the government.(d) The time by which the revised pay scales will be implemented for the employees and pensioners?The government replied: The implementation would be taken up once the recommendations are made by the 8th CPC and are accepted by the government.The setting of 8th Pay commission is not only being eagerly awaited by salaried employees but also by the pensioners. Nearly 67 lakh government pensioners are also impacted by any revision in the pay scale.Previous Pay Commissions have included changes in pension calculation formulas and benefits, and similar adjustments are expected this time as well.The merger of Dearness Relief (DR) into basic pension also affects pensioners, as their payouts are tied to similar structures. Any revision in the base figures could significantly alter monthly pension amounts.Retired employees' associations have echoed the concerns of serving staff, pushing for greater clarity from the government on how pension recalculations will be carried out in the new structure.According to a report by Ambit Capital, the 8th Pay Commission could see the minimum salaries of government employees to be hiked to Rs Rs 40,000 - Rs 45,000, with pension adjustments following suit. DA will reset, but higher allowances may offset the initial flattening in salary growth.The 8th Pay Commission is aimed to deliver significant financial changes for government employees and pensioners. Yet, the pace of bureaucracy, pending approvals, and fiscal balancing may delay the implementation beyond the earlier-set target of January 2026, said the report.
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Time of India
2 hours ago
- Time of India
8th Pay Commission: What could be the expected salary hike, fitment factor, and implementation date? Here's what a new report says
8th Pay Commission: Expected salary revisions 8th Pay Commission: Implementation expected to follow past timelines Impact on government finances and GDP Live Events You Might Also Like: 8th Pay Commission good news: Govt starts discussions on salary hike; check expected basic pay and dearness allowance Previous pay commission effects Consultations underway You Might Also Like: Why 8th Pay Commission may end up disappointing government employees and pensioners 8th Pay Commission: Expected salary hike Dearness allowance mechanism to remain in place Previous CPC set benchmark for revisions (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The 8th Central Pay Commission (CPC) is expected to be implemented by late 2026 or early 2027, according to a report by Kotak Institutional Equities. The government has announced the commission in January 2025 but is yet to finalise the Terms of Reference (ToR) or appoint its estimates that the minimum salary could rise from ₹18,000 to about ₹30,000, reflecting a fitment factor of around 1.8. This would lead to a real increase of nearly 13% in pay for central government employees affected by the revision. A total of around 3.3 million central employees, mostly from Grade C category, are likely to benefit the most. Grade C workers make up nearly 90% of the central government timeline for the 8th CPC is expected to follow the pattern of previous commissions. The 6th and 7th CPCs took around 1.5 years to complete their reports. After that, the government took another 3 to 9 months to implement the recommendations post Cabinet approval. Kotak said, "The 8th CPC is unlikely to be implemented before late 2026 or early 2027."The estimated financial burden of the new pay commission could range between ₹2.4 lakh crore and ₹3.2 lakh crore, or about 0.6–0.8% of India's GDP. While this could add pressure to the fiscal budget, past pay revisions have shown temporary positive effects on the noted that the pay hike may give a brief push to consumption and savings. 'We expect the 8th CPC to provide a temporary boost to consumption and savings,' the firm said. The impact is expected to be visible in sectors like automobiles and consumer staples. However, such gains have typically been firm also said that the revised pay structure may encourage more savings in both physical and financial assets such as equities and bank deposits. Kotak estimates that the pay revision could lead to incremental savings of ₹1–1.5 lakh last major revision, the 7th CPC, combined with the One Rank One Pension scheme, added about two percentage points to India's GDP growth in FY17. While similar growth is not guaranteed this time, Kotak believes the overall economic impact will still be significant, particularly in the short government has not shared further updates on the 8th CPC beyond its announcement in January 2025. Until the ToR and commission members are finalised, the process remains in its early per a report last week, the Ministry of Finance has started holding early consultations with major stakeholders to set up the 8th Central Pay Commission. These talks include departments such as Defence, Home Affairs, and Personnel and Training, along with state governments. These discussions are intended to collect feedback ahead of the official notification of the a written reply in Parliament, Minister of State for Finance Pankaj Chaudhary said, 'Inputs have been sought from major stakeholders, including Ministry of Defence, Ministry of Home Affairs, Department of Personnel & Training and from states.'Chaudhary also told the Lok Sabha that the appointment of the chairperson and other commission members will take place once the 8th CPC is formally constituted. No appointments have been made so upcoming CPC may propose a fitment factor of 1.8 for salary revision. This would be lower than the 2.57 factor adopted in the 7th Pay Commission. While a fitment factor of 1.8 implies an 80% increase in the basic pay structure, the real impact on net salary would be reduced because the existing dearness allowance (DA)—currently around 55%—would reset to zero under the new the fitment factor of 1.8 is accepted, the minimum basic salary may increase from ₹18,000 to around ₹32,000. But after adjusting for current allowances, the actual increment would amount to an estimated 13%. For example, the present ₹18,000 base salary includes a DA component of about ₹9,900. Similarly, a base salary of ₹50,000 may be revised to ₹90,000, but since DA of around ₹27,500 is already included, the effective rise would be twice-yearly revision of dearness allowance is expected to continue under the 8th CPC. The DA, based on the Consumer Price Index for Industrial Workers, protects salaries and pensions from inflation. At present, revisions take place in January and July. By the time the new pay structure is introduced, the DA is projected to exceed 60% of the existing basic 7th Pay Commission, headed by Justice A K Mathur, recommended an overall rise of 23.55% in salaries, pensions, and allowances. The government approved most of the proposals with effect from January 1, 2016. The structure and impact of the 8th CPC are likely to be shaped by current economic conditions and inflation, but will follow broadly the same process, beginning with the collection of inputs from relevant departments and states.
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Only a handful of 130 BC castes enjoying govt sops
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New Indian Express
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- New Indian Express
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