8th Pay Commission: Comparison With 7CPC And 6 CPC; Date, Fitment Factor, Salary Hike!

8th Pay Commission: Comparison With 7CPC And 6 CPC; Date, Fitment Factor, Salary Hike!

8th Pay Commission: As per the latest report, the government may take between 2026-2027 to implement the 8th Pay Commission. The 8 CPC which will be a new pay matrix for government employees and pensioners, is expected to increase salaries and pensions. However, there was no announcement including allocation towards 8CPC in the Budget 2025. That being said, reports claim that the government may announce the expenses related to 8CPC in Budget 2026-27.

When the Cabinet led by PM Narendra Modi approved the 8th Pay Commission in January month, they announced that they would take into consideration recommendations in 2025. Hence, the 8CPC is unlikely to be implemented in the 2025 year.

However, in every Pay Commissions, there has been a standard gap of 10 years. Before 8CPC, currently, government employees followed the Pay Matrix of the 7th Pay Commission which was implemented on January 1, 2016. This should ideally bring January 1, 2026, as a key date to implement 8CPC.

Expenditure Secretary Manoj Govil told MoneyControl, that the Budget for 2025-26 has not accounted for any expenses related to the 8th Pay Commission, as the pay panel’s report is expected to take at least a year to be finalised and approved.

Further, it is reported that the Finance Ministry has likely asked the Ministry of Defence, the Ministry of Home Affairs, and the Department of Personnel and Training for recommendations under 8CPC.

While the recommendations under 8CPC are yet to come, let us see the key changes in the previous two commissions.

7th Pay Commission:

Salary Structure: The minimum basic salary was increased to Rs 18,000 from Rs 7,000. The fitment factor was 2.57, which led to a salary hike of 23%-25% across employees.

Pension Hike: Pensions also saw a significant increase to Rs 9,000 from earlier Rs 3,500 per month under 7CPC.

Allowance: In 7CPC, the dearness allowance was increased to 53% last year, to offset the impact of high inflationary pressures on government employees’ salaries.

Other Benefits: There was also a health insurance scheme announced for these employees and pensioners under 7CPC.

6th Pay Commission:

Salary Structure: Minimum salary surged up to 40% under 6CPC. The fitment factor was around 1.86, which led to hike in minimum basic salary to Rs 7,000 from Rs 2,750 of previous commission. 6CPC brought significant upside to lower-tier PSU employees.

Pension Hike: Retirees also saw massive upside in their pensions. To be precisely, pensions doubled to Rs 3,500 per month from Rs 1,275 of previous commission.

Allowance: The dearness allowance was increased to 22% from 16%. Also, under 6CPC, government had introduced new reforms for House Rent Allowance (HRA) and Transport Allowances.

Other Benefits: The introduction of risk insurance for hazardous roles was a notable change, replacing the previous risk allowance system, as per Angel One.

What Is Expected In 8 Pay Commission:

There is debate of what could be the appropriate fitment factor under 8CPC. So far, media reports have stated that the fitment could be either 1.92, 2.08 or 2.86. Either way, under 8CPC, the basic pay matrix is going to increase, which will boost the livelihood of government employees against inflation.

8CPC, is likely to be beneficial to 50 lakh central government and 65 lakh pensioners.

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Original news source Credit: www.goodreturns.in

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