After benefiting from the 7th Pay Commission for almost a decade, central government employees have eagerly awaited updates on the 8th Pay Commission’s Latest News. The Government of India has thoroughly discussed the salary structure formulated by the 7th Pay Commission, which includes various companies that make employee salaries. These essential elements encompass the basic salary, dearness allowance, housing and rent allowances, travel allowances, medical allowances, and more.
Recently, there has been news that has sparked excitement among government employees. It indicates that the government may soon propose the creation of the 8th Pay Commission 2023 Date.
8th Pay Commission Latest News
Recently, central employees received a positive development as their dearness allowance has once again increased. According to the AICPI index, there has been a 4% hike in DA. However, attention has now shifted towards the upcoming 8th Pay Commission. The government has announced the date for planning this commission, indicating that central employees can anticipate a salary increase based on the new formula soon. Currently, they are receiving salaries under the 7th Pay Commission, but noteworthy updates regarding the 8th Pay Commission have surfaced.
8th Pay Commission – Expected Dearness Allowance
A proposed 4% increase in dearness allowance would result in a 46% DA increment on top of employees’ regular salary. The government plans to increase the dearness allowance for employees again in January 2024. Suppose the cumulative dearness allowance reaches 50% of employees’ basic salaries. In that case, the government may initiate a review of the pay commission, which could lead to the implementation of the 8th Pay Commission Date. Central government employees may see a reset in their dearness allowance, but they can expect a corresponding increase in their basic salaries according to new regulations.
|Commission Name||8th Pay Commission|
|Effective Date||July 1, 2026|
|Responsible Authority||Ministry of Finance (MoSF)|
8th Pay Commission – Pay Matrix & Fitment factor
Government employees can calculate their salary using the 8th Pay Commission pay matrix. The government has created a straightforward pay matrix table chart for the 8th Pay Commission. It was introduced as part of the Pay Commission. It is worth mentioning that during the Sixth Pay Commission, the entry-level basic salary for employees was Rs. 7 thousand, with a 125% dearness allowance. Following the implementation of the Seventh Pay Commission, employee salaries have increased by up to 14%. Additionally, DA is also provided.
The overall impact of a pay commission on the salaries of central government employees is largely determined by the fitment factor. A larger increase in salaries can be expected with a higher fitment factor. Nevertheless, the government must also take into account the impact of a higher fitment factor on the overall fiscal deficit. The 7th Pay Commission proposed a fitment factor of 2.57, which was used to calculate the new basic pay by multiplying it with the existing pay. As for the upcoming 8th Pay Commission, the fitment factor has not been determined yet. However, employee unions are advocating for a higher fitment factor ranging between 3.0 and 3.68. If these demands are met by the government, it would substantially increase the basic pay for central government employees.
8th Pay Commission Salary Calculator
The government in the past rejected proposals for establishing the 8th Pay Commission. Central government employees and pensioners receive Dearness Allowance (DA) and Dearness Relief (DR) to counterbalance the effects of inflation on their salaries and pensions. As of January 2023, these rates have been raised to 42% of their salary and pension. The implementation of the 8th Pay Commission aims to guarantee a minimum basic salary of Rs 25,000. The rates of DA/DR are reviewed biannually based on the All India Consumer Price Index for Industrial Workers (AICIP-IW).
Will the Government set up the 8th CPC?
Pankaj Chaudhary, Minister of State for Finance, emphasized the importance of Dearness Allowance (DA) and Dearness Relief (DR) in providing compensation to Central Government employees and pensioners for the decrease in their pay and pension’s real value caused by inflation. As of January 2023, the DA/DR rates were raised to 42% of the pay and pension. These rates are adjusted every six months based on the All India Consumer Price Index for Industrial Workers (AICPI-IW).
When asked about the recommendation from the last three Central Pay Commissions to adjust future pay when DA/DR reaches 50% or more than the basic pay to mitigate the effects of inflation, the MoS Finance stated that there is currently no proposal for such a revision.
There was an important update regarding the potential establishment of the Eighth Central Pay Commission by Pankaj Chaudhary. As the projected rate of DA/DR is expected to exceed 50% or more from January 2024, people wondered if the Central Government plans to establish the commission. Chaudhary clarified that there is currently no proposal under consideration by the government for setting up the Eighth Central Pay Commission.
FAQs about the 8th Pay Commission Date
Currently, the Ministry has no plans regarding the establishment of the 8th Pay Commission.
Calculating the 8th CPC Fitment factor requires taking into account the dearness allowance (DA) rate, as the 8th Pay Commission is set to begin on January 1, 2026. If the DA rate reaches 70 percent by December 31, 2025, the proposed multiplication factor for the 8th CPC after DA adjustment would be 1.70.