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8th Pay Commission: Salary hike that employees wanted and what they finally received in 6th and 7th CPCs

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3 min read | Updated on February 20, 2025, 14:55 IST

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SUMMARY

While the 8th Pay Commission will eventually recommend revisions to salaries and various allowances for central government employees and pensioners, past experiences suggest that having overly high expectations from the 8th CPC may lead to disappointment.

8th pay commission expectations vs reality

Having overly high expectations from the 8th CPC may lead to disappointment. | Image source: Shutterstock

As central government employees eagerly await the constitution of the 8th Central Pay Commission (CPC), numerous speculations regarding salary and fitment factor hikes are circulating on social media.

In recent weeks, several media reports have also speculated that the 8th Pay Commission may increase the minimum salary of central government employees by a fitment factor of 2.86.
However, there is no basis for such reports as the 8th Pay Commission is yet to be officially established. Even after it is set up, it may take a year or more to submit its final recommendations.
While the 8th CPC will eventually recommend revisions to salaries and various allowances for central government employees and pensioners, past experiences suggest that having overly high expectations from the 8th CPC may lead to disappointment.

Lesson from 6th and 7th pay commissions

The 7th Pay Commission had not fully accepted the pay revision demands of employees. Before the 7th CPC, the JCM-Staff Side, which was representing employees, had submitted a memorandum demanding around 271% hike in minimum pay from ₹7000 to ₹26,000. To accept this demand, the 7th CPC would have to recommend a fitment factor of 3.7.

"The JCM-Staff Side, in their memorandum, have proposed that the minimum salary, at the lowest level, should be determined using a need based approach. They have proposed that the minimum wage for a single worker be based on the norms set by the 15th Indian Labour Conference...The minimum pay as suggested in the memorandum is ₹26,000, which is around 3.7 times the existing minimum salary of ₹7,000," the 7th CPC noted in its report.

However, the 7th CPC recommended a minimum salary of only ₹18,000, which was around 157% more than the previous minimum salary of ₹7000 under the 6th pay commission.

"While the broad approach is similar, the specifics do vary and the Commission has, based on need-based minimum wage for a single worker with family as defined in the Aykroyd formula, computed the minimum pay at ₹18,000," the 7th CPC said.

The 6th Pay Commission had also not fully accepted the minimum salary hike demand of the employees.

Various associations of the Staff Side in JCM had demanded a minimum monthly salary of ₹10,000. The Staff Side had also argued that minimum salaries in Public Sector Enterprises were in the vicinity of ₹10,000 per month. Hence, a similar salary should be provided to central government employees as well.

However, the 6th CPC said, "contention, that minimum salaries in Public Sector Enterprises are in the vicinity of ₹10,000 per month and a similar dispensation needs to be extended to the Central Government employees as well, is not based on facts as such minimum salary did not exist in most of the Public Sector Enterprises as on 1.1.2006."

The 6th CPC eventually recommended a minimum salary of around ₹7000.

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