New Delhi: The Union cabinet led by Prime Minister Narendra Modi on 16 January 2025 approved setting up the 8th Pay Commission to revise salaries of nearly 50 lakh central government employees and allowances of 65 lakh pensioners.
Focused on rationalizing the pay structure after India’s independence Introduced the concept of the “living wage” Minimum salary: Rs 55/month; maximum salary: Rs 2,000/month Beneficiaries: Around 1.5 million employees
Focused on balancing the economy and living cost Recommended the minimum wage of Rs 80/month; maximum of Rs 3000 per month. Introduced the ‘socialistic pattern of society’ Beneficiaries: Approximately 2.5 million employees
Recommended minimum pay of Rs 185/month, maximum of Rs 3,500 per month
Emphasized salary parity between public and private sectors Addressed inequalities in the pay structure Beneficiaries: About 3 million employees
Recommended a minimum salary of Rs 750/month, maximum of Rs 8,000/month.
Focused on reducing disparities in salaries across rank.
Introduced a performance-linked pay structure Beneficiaries: Over 3.5 million employees
Recommended a minimum pay of Rs 2,550, maximum of Rs 26,000/month. Suggested reducing the number of pay scale Focused on modernizing government office Beneficiaries: Around 4 million employees
Introduced Pay Bands and Grade Pay
Minimum salary: Rs 7,000/month; maximum salary: Rs 80,000/month Emphasized performance-related incentive Beneficiaries: Nearly 6 million employees
Minimum pay raised to Rs 18,000/month; maximum pay Rs 2,50,000/month Recommended a new pay matrix instead of grade pay system Focused on allowances and work-life balance Beneficiaries: Over 10 million (including pensioners)
As per media reports the pay panel will base the fitment factor in the range of 1.92 to 2.86. Should the recommendation of 2.86 fitment factor is given a green signal, the minimum basic salary of a government employee would go up from Rs 18,000 per month to Rs 51,480. The minimum pension, based on the same factor will go up to from Rs 9,000 currently to Rs 25,740.
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