The upcoming meeting of the Joint Consultative Machinery (JCM), formed to review the salaries and pensions of central government employees, is scheduled to take place in November with Prime Minister Modi.
During this meeting, discussions on the formation of the 8th Pay Commission will be held. Shiv Gopal Mishra, the Chief of the All India Railwaymen’s Federation and Secretary of JCM’s National Council stated that employee unions will present their demand for the establishment of the 8th Pay Commission to the government in this meeting.
The Demand of Employee Unions
Employee unions have stated that they have already submitted two memorandums to the government, demanding the formation of the 8th Pay Commission at the earliest. To provide context, the 7th Pay Commission was formed in 2014, and its recommendations were implemented in 2016, leading to an approximate 23% increase in salaries. Traditionally, a new pay commission is established every 10 years.
Purpose of the Pay Commission
The primary role of the Pay Commission is to review, revise, and suggest changes to the salaries, allowances, and other benefits of central government employees and pensioners. So far, seven pay commissions have been established, with the first one being formed in 1946. Each pay commission has introduced necessary changes and improvements to the salary structure to meet contemporary demands.
Need for the 8th Pay Commission
Although pay commissions are traditionally constituted every 10 years, the 7th Pay Commission recommended annual reviews of salaries and pensions instead of forming new commissions. However, the government has not been implementing yearly increments, effectively ignoring the 7th Commission’s recommendation. This has led to speculation and hope for the formation of the 8th Pay Commission.
Government’s Stance
As of now, the government has not issued a clear statement on this matter. However, discussions on the 8th Pay Commission are expected in the upcoming Joint Consultative Machinery (JCM) meeting, raising hopes among employees. If the government agrees, it will be a significant relief and positive news for central government employees.
Projected Salary Increases
If the 8th Pay Commission is introduced, there will likely be substantial increases in salaries and pensions. For instance, if an employee’s basic pay on December 31, 2025, is ₹50,000, it will be multiplied by a fitment factor of 1.92 to determine the new basic pay:
Example:
- Basic Pay as of December 31, 2025: ₹50,000
- Fitment Factor: 1.92
- New Basic Pay: ₹50,000 × 1.92 = ₹96,000
- Increase in Basic Pay: ₹46,000
The fitment factor is calculated by merging the Dearness Allowance (DA), which will be reset to 0%.
New Salary as of January 1, 2026
- Basic Pay: ₹96,000
- DA: ₹0
- HRA: ₹28,800
- TA: ₹8,000
- Total Salary: ₹1,32,800
Conclusion
The formation of the 8th Pay Commission is a crucial issue for central government employees. This commission would not only enhance salaries but also align pay and allowances with changing economic conditions. Employees are looking forward to positive decisions in the upcoming JCM meeting, hoping for much-needed relief and reforms.