Central Govt Salary Hike: What To Expect From 8th Pay Commission

The Modi government has newly launched a fresh 8th pay commission, this body is expected to provide its recommendations for the revision of wages and pensions that concern central government staff shortly. The Commission, which would be submitting its final report to the Centre, after which the center may decide on the entire document’s adoption, is believed to be receiving the government’s nod on a timeline of January 1, 2026.

Since the government’s declaration on the 16th of January, central government employees and pensioners have remained keen to watch as the Pay Commission recommends fitment factors for hikes in the salaries of these categories of staff. Once the fitment factor is determined, the pay matrix will be known to all central government employees of levels 1 to 10. The fitment factor is a multiplication used to calculate the revised salary by multiplying the same with the last drawn basic pay.

The new committee will figure out the wages at different job levels in the updated Pay Matrix of the previous panel.

Under the 7th Pay Commission, the fitment factor was fixed as 2.57, consequently enhancing the existing minimum basic pay of Rs 7,000 up to the awaited sum of Rs 18,000.

How Far Will The Fitment Factor Move At The 8th Pay Commission High?

Expectations suggest that, come the 8th Pay Commission, the minimum payment in the pay range may rise to Rs 51,480 if the fitment factor is increased to 2.86 — up by 186%, going by what the reports have to say. There could be extra deductions or adjustments in the actual new salary hike. So, here, we bring you projections considering a minimum fitment factor of 2.86.

The revised basic pay of central government employees across various levels of the Pay Matrix is expected to rise as per the 2.86 multiplication in the 8th pay commission pay matrix.

Pay LevelCurrent Basic Pay (7th CPC)Expected Revised Basic Pay (8th CPC)Increase (Approx)
Level 1₹18,000₹51,480₹33,480
Level 2₹19,900₹56,914₹37,014
Level 3₹21,700₹62,062₹40,362
Level 4₹25,500₹72,930₹47,430
Level 5₹29,200₹83,512₹54,312
Level 6₹35,400₹1,01,244₹65,844
Level 7₹44,900₹1,28,414₹83,514
Level 8₹47,600₹1,36,136₹88,536
Level 9₹53,100₹1,51,866₹98,766
Level 10₹56,100₹1,60,446₹1,04,346

Level 1: Peons, attendants, and MTS were employed to execute various essential support services.

Level 2: The function of a Lower Division Clerk (LDC) typically involves handling clerical and routine admin tasks.

Level 3: Indentured Servants and Craftsmen in the Military or Civilian Force.

Level 4: Stenographers (Grade D) and Junior Clerks taking care of transcription and documentation.

Level 5: Senior Clerk, Assistant, or Technical Staff shall provide high-level administrative or technical support.

Level 6: Technical or supervisory positions for inspectors, sub-inspectors, and junior engineers.

Level 7: Generals or Clerk Grade-Is or the equivalent working in project implementation or intricate administrative work.

Level 8: Senior Audit Officers or Assistant Audit Officers conduct audits or higher administrative functions.

Level 9: DSPs or accounts officers are responsible for operational or financial management.

Level 10: Group A Officers, such as Assistant Commissioners or entry-level officers in services like IAS, IPS, and IFS.

What’s Next?

It is expected like the 7th Pay Commission that the 8th Pay Commission will increase the salaries and pensions for central government employees given today’s economic realities, using Aykroyd’s formula. Let’s focus on knowing the Aykroyd formula along with its application in the recommendations of the 7th Pay Commission.

What Exactly Is The Aykroyd Formula?

Dr. Wallace Aykroyd, a nutritionist, developed the Aykroyd formula to estimate the minimum cost of living. Based on an average earnings estimate, the formula requires the basic needs of the worker to nourish them accordingly.

The 7th Pay Commission had raised the Government servant minimum basic pay from Rs.7000 to Rs.18000 which was based on the Aykroyd formula. The increase in basic pay was calculated based on the cost of living and nutritional needs at that time.

When Will The Government Recruit Its Members Into 8th Pay Panel?

Union Minister Ashwini Vaishnaw said in his January 16 announcement of the setting up of the 8th Pay Commission that the government would soon appoint two members and one Chairman for the respective committee, without much detail about the timeline.

Resource link:

https://www.financialexpress.com/money/8th-pay-commission-pay-matrix-central-govt-employees-expected-salaries-at-level-1-10-details-inside-3730200/

https://zeenews.india.com/photos/business/8th-pay-commission-major-highlights-of-7th-cpc-likely-to-impact-recommendations-this-time-around-2850760/highlights-of-7th-pay-commission-pension-recommendation-2850762

https://upstox.com/news/personal-finance/latest-updates/new-fitment-factor-in-8th-pay-commission-may-hike-minimum-salary-to-34-560-37-440-report/article-143076/

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