Central Government Employees May Get a Basic Salary of ₹51,000
Currently Minimum is ₹18,000; 8th Pay Commission to be Implemented from January 1
Basic Salary May Rise for Level-1 Employees
The basic salary of Level-1 central government employees could increase from the current ₹18,000 to ₹51,000. This hike is expected due to the implementation of a fitment factor of up to 2.86 under the 8th Pay Commission. Based on this fitment factor, salaries of employees across various levels will also see a similar increase.
Over 1.15 Crore Beneficiaries
The revision in salary, pensions, and allowances is likely to benefit over 50 lakh central government employees and around 65 lakh pensioners.
8th Pay Commission to be Effective from January 1, 2026
The government has announced that the 8th Pay Commission will be implemented from January 1, 2026. The approval for its formation was granted on January 16, 2025.
Proposal to Merge Employee Levels
The government has received suggestions to merge the existing employee levels. A proposal has been made to reduce six pay levels into three:
- Level 1 with Level 2
- Level 3 with Level 4
- Level 5 with Level 6
This merger aims to benefit employees in the lower pay scale and enhance career growth opportunities.
Official Formation Approved on January 16, 2025
On January 16, 2025, the Union Cabinet officially approved the formation of the 8th Pay Commission. However, the Terms of Reference for the commission have not been published yet.
The commission is expected to focus on major issues such as the fitment factor and minimum wage standards. Government employees and pensioners hope that revisions will consider the current economy and inflation.
Role and Purpose of the Pay Commission
The Pay Commission is formed to review and recommend changes to the salary structure of government employees. It works under the Department of Expenditure and is generally constituted every 10 years.
Current and Proposed Basic Salary Structure
Currently, the basic monthly salary for Level-1 employees is ₹18,000, while Level-2 employees receive ₹19,900. With the proposed level merger, Level-1 employees could see a greater benefit as the new salary structure would start from a higher base.
Revised Basic Pay May Go Up to ₹51,000
With a fitment factor of 2.86 expected from the 8th Pay Commission, the revised basic pay for Level-1 employees could rise from ₹18,000 to ₹51,000. The actual fitment factor will be announced once the commission officially releases its recommendations.
Recap: Salary Hike Under 7th Pay Commission
Under the 7th Pay Commission, the minimum basic salary had increased from ₹7,000 to ₹18,000, thanks to a 2.57 fitment factor. Similarly, pensions were revised from ₹3,500 to ₹9,000. The commission had also introduced a new health insurance scheme for government employees.
Government Approves Formation of 8th Pay Commission
On Thursday, the central government officially approved the formation of the 8th Pay Commission. According to Union Minister Ashwini Vaishnaw, its recommendations will come into effect from 2026. The 7th Pay Commission, implemented from January 1, 2016, benefited nearly 1 crore individuals.