During the recent pre-budget meeting with Finance Minister Nirmala Sitharaman, 10 Central Trade Unions, along with the Bharatiya Mazdoor Sangh, pushed the government to announce the 8th Pay Commission. The demand shows that central government employees are becoming increasingly concerned about delayed salary revisions and inadequate benefits.
Expectations ran high that the Budget 2025 may present new Pay Commission proposals. But on Thursday, in the Rajya Sabha session, the Finance Ministry broke these dreams when it clearly mentioned there was no present agenda for introducing the 8th Pay Commission. More than a crore central government employees and pensioners have become dejected over the same.
8th Pay Commission can get an astonishing 186% pay increase
The secretary of the NC-JCM- National Council of Joint Consultative Machinery, Shiv Gopal Mishra, last week indicated the possibility that the next Pay Commission might recommend quite a jump in the fitment factor to possibly 2.86. Once applied, pay and allowances will soar by a dramatic 186% from current pay scales.
For example, the minimum basic salary for employees of the central government may be ₹51,480 from ₹18,000. Minimum pensions for pensioners would also rise to ₹25,740 from ₹9,000. That’s a huge hike that has generated interest and hope in the minds of employees and pensioners.
A new pay commission mechanism to replace existing pay commission
There are reports that the government may revamp the old Pay Commission system, which has been in place for decades. The new mechanism is likely to be based on performance metrics and inflation adjustments. This will replace the old system with a more dynamic framework, where revisions to salaries and pensions will be timely and responsive.
The proposed shift could modernize the system but raises questions about its implementation and fairness. While employees await clarity, union leaders continue to advocate for their demands.
Also, see: Union Budget 2025: Will Taxpayers Finally See Income Tax Relief?