The salaries of central government employees could rise by ₹14,000 to ₹19,000 per month if the 8th Pay Commission is implemented, according to estimates by Goldman Sachs. This revision is expected to benefit approximately 50 lakh government employees and 65 lakh pensioners across India.
Pay Commissions are periodically set up by the government, usually every 10 years, to revise pay scales, pensions, and other benefits in response to economic conditions, inflation, and the cost of living. The 8th Pay Commission, once formed, will review salary structures and recommend appropriate hikes.
If the government allocates ₹1.75 lakh crore for the revisions, a mid-level government employee earning ₹1 lakh per month could see an increase to ₹1,14,600. With a ₹2 lakh crore allocation, the salary may rise to ₹1,16,700, and with ₹2.25 lakh crore, it could reach ₹1,18,800.
The 7th Pay Commission, implemented in 2016, had raised the fitment factor to 2.57, increasing the minimum basic salary from ₹7,000 to ₹18,000. Experts suggest that the 8th Pay Commission may increase this factor to around 3. However, former Finance Secretary Subhash Chandra Garg has cautioned that the hike might be more conservative, possibly around 1.92.
While the government has yet to officially announce the panel, discussions indicate that it may be constituted in April 2025, with recommendations coming into effect by 2026 or 2027.
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