The pay commission is a boon for employees and pensioners. Each time a new pay commission is introduced, salaries and pensions change.
The same happened when the 5th, 6th, and 7th Pay Commissions were implemented. Therefore, it’s expected that if the 8th Pay Commission comes into force, there will be another increase in salary and pension. Let’s find out what this change looks like.
Since the establishment of the Pay Commission, the salaries and pensions of central government employees and pensioners have significantly increased.
Seven pay commissions have been formed since the first one in 1946. Each time, the salaries of employees and pensioners have changed. This time, a substantial change is also expected, leading to demands for the 8th Pay Commission.
Historically, when the 5th, 6th, and 7th Pay Commissions were formed, central government employees’ salaries and pensioners’ salaries changed. This trend is anticipated to continue.
Let’s explore the increase in the last three Pay Commissions, the projected minimum and maximum wages, and the potential changes in the 8th Pay Commission. This analysis will also illuminate the government’s rationale for establishing a wage commission.
The Pay Commission aims to periodically review the salaries and pensions of central government employees and pensioners and make appropriate adjustments based on the inflation rate and economic conditions.
The first Pay Commission in the country was established in January 1946, before independence. Reports from the commission were published in May 1947, and since then, Pay Commissions have been formed every ten years.
The most recent 7th Pay Commission was established in January 2016. Since the commission will take at least two years to effect, the 8th Pay Commission must be established and implemented in 2026.
Changes in Salaries and Pensions in Previous Pay Commissions:
5th Pay Commission: Constituted in April 1994 and came into effect from January 1996. The minimum wage was Rs 2,750.
6th Pay Commission: Constituted in July 2006, effective August 2008. The minimum wage was set at Rs 7,000.
7th Pay Commission: Constituted on 28 February 2014 and came into effect on 1 January 2016. The minimum wage was increased to Rs 18,000.
The 8th Pay Commission is scheduled to take effect from 2026 onwards. Therefore, its establishment now is necessary for its timely implementation.
Employees are eagerly awaiting the announcement of the establishment of the 8th Pay Commission. Salaries may increase by 20-30 percent, bringing Level 1 employees’ wages to around Rs 34,560 and Level 18 employees’ salaries to approximately Rs 4.8 lakhs. Retired personnel and pensioners are also anticipated to benefit from these changes.
The estimated fitment factor for the 8th Pay Commission is 1.92 percent, projecting a minimum pay of Rs 34,560 and a minimum pension of Rs 17,280.