8th Pay Commission: Should minimum wage exceed Rs 50,000 for government employees? – Money News

Like the 7^th The salary commission, which was implemented in 2016, is nearing the end of its ten-year term in January 2026, the hottest debate at the moment concerns the next salary commission. As we wait for the 8th Pay Commission, central government employees are eagerly awaiting the updates.

The 7th Pay Commission was established in February 2014 under the Manmohan Singh government. Its recommendations led to significant revisions to salaries and pensions. However, with his term ending in January 2026, attention shifted to the next panel. In the past, a new salary commission was created every 10 years to review and adjust the basic salaries of civil servants. Let’s understand what all the considerations will be taken into account.

Crucial adjustment factor for salary increases

A key aspect of each salary commission is the adjustment factor, which determines the size of salary and pension increases. Under the 7th Pay Commission, the adjustment factor was fixed at 2.57, increasing the minimum wage from Rs 7,000 to Rs 18,000.

The employee unions, however, had demanded a higher adjustment factor of 3.67, but this was not approved. For the 8th pay commission, the unions expect an adjustment factor of at least 2.86. Shiv Gopal Mishra, secretary (staff side) of the National Council of the Joint Consultative Mechanism (JCM), recently highlighted this demand.

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If the adjustment factor of 2.86 is adopted, salaries and pensions could see substantial increases. The minimum salary for government employees could rise to Rs 51,480, compared to Rs 18,000 currently. Similarly, pensions could increase up to Rs 25,740, a significant jump from Rs 9,000.

Adhil Shetty, CEO, Bankbazaar.com, says, “The government is setting up salary commissions to help adjust salaries to counter the effects of inflation by revising salary structures. They analyze economic indicators such as inflation rates, cost of living and other trends to recommend salary increases. The adequacy factor, a key tool, ensures uniform increases across pay levels. This systematic adjustment maintains the purchasing power of state employees, allowing them to meet increasing expenses.”

Formation of the 8th Pay Commission

The National Council of Joint Consultative Mechanisms (NC-JCM), the highest body representing employee grievances, actively pushed for action. In July 2024, he submitted a memorandum requesting immediate steps to establish the commission. Another call was launched in August 2024.

Employee unions also raised the issue with the Finance Secretary earlier this month. They stressed the need for rapid implementation to ensure smooth salary and pension adjustments.

Missed announcement during Union Budget

Speculation over the formation of the 8th Pay Commission peaked ahead of the Union Budget 2024-25, presented in July 2024. Media reports suggested that the Center may announce the composition of the group during the budget session. However, no such announcement has been made, leaving employees waiting for clarification.

Looking to the future

As the term of the 7th Pay Commission ends in 2026, the pressure to establish the next commission is increasing. The adjustment factor and its impact on salaries and pensions remain at the forefront of discussions.

For now, central government employees can only hope that the Center will prioritize their demands and start the process soon. The next few months could be crucial in shaping the future of Indian government salaries and pensions.