The wait for the 8th Pay Commission is on, and central government employees are looking forward to another round of salary hikes. The Pay Commission has been instrumental in ensuring that employee salaries keep pace with inflation and the increasing costs of living. Let’s take a look at how salaries have been changing over the last four Pay Commissions and what is in store in terms of the 8th Pay Commission.
The Working of the Pay Commission
The Pay Commission’s recommendations are a major determinant in the review of salaries for the employees of the government once every ten years. It considers all factors, such as inflation, economic conditions, and the cost of living, before suggesting changes in pay scales and pensions. When the government implements the recommendations, the employees receive substantial increases in salaries.
A Journey Through the Last Four Pay Commissions
4th Pay Commission (1986)
- Minimum Basic Salary: Rs 750
- Maximum Basic Salary: Rs 9,000
The 4th Pay Commission marked a significant step in improving the financial well-being of government employees, setting the foundation for future revisions.
5th Pay Commission (1996)
- Minimum Basic Salary: Rs 2,550
- Maximum Basic Salary: Rs 26,000
This revision brought a substantial hike, reflecting the economic changes of the time and the need to support employees better.
6th Pay Commission (2006)
- Minimum Basic Salary: Rs 7,000
- Maximum Basic Salary: Rs 80,000
The 6th Pay Commission introduced a more structured pay scale, ensuring that employees were compensated fairly for their work.
7th Pay Commission (2016)
- Minimum Basic Salary: Rs 18,000
- Maximum Basic Salary: Rs 2,50,000
The most recent revision saw a dramatic increase in salaries, thanks to a fitment factor of 2.57, which multiplied the basic pay of employees from the 6th Pay Commission.
What to Expect from the 8th Pay Commission
The 8th Pay Commission came about into being on January this year but it is yet to be convened. The recommendations are yet to be available for acceptance. Employees wait for yet another major salary hike considering the inflation and rising cost of living.
The fitment factor shall be a very important determinant for the new salary structure. The previously used fitment factor for the 7th Pay Commission was 2.57, with estimates for the 8th Pay Commission fitment factor from 1.92 to 2.86. Should the government choose the higher range, the maximum merger of the basic pay would certainly be over Rs 6,00,000, which shall be very much applauded by the workforce.