The Fourth Pay Commission was implemented 40 years ago i.e. in 1986. Then the minimum basic pay was fixed at Rs 750. Now the 8th Pay Commission has been approved by the Central Government. The basic salary of central government employees will be Rs 51,480 per month.
PM Modi approved the formation of 8th Pay Commission
This means that the minimum wage has increased by 6,764 percent in 40 years. Prime Minister Narendra Modi on Thursday approved the formation of the Eighth Pay Commission to revise the salaries of central employees and allowances of pensioners. According to experts, under the 8th Pay Commission, the basic salary of central employees can be Rs 51,480 per month.
What was the minimum salary of central employees under the Fourth Pay Commission 40 years ago in 1986?
According to the data of the Central Government, from the 4th Pay Commission to the estimated figures as per the recommendations of the 8th Pay Commission, the salary of the central employees has increased by about 69 times.
Government's decision regarding 8th Pay Commission
Information and Broadcasting Minister Ashwini Vaishnav, while briefing on Thursday, said that the Prime Minister has approved the 8th Central Pay Commission for central government employees. The chairman and two members of the commission will be appointed soon. The Seventh Pay Commission was constituted in 2014 and its recommendations came into effect from January 1, 2016.
Term expires in 2026
The minister said starting the process of constituting a new Pay Commission in 2025 will ensure that the recommendations of the Seventh Pay Commission are received and reviewed before the expiry of its tenure.
How does commission work?
The Pay Commission holds extensive consultations with the Central and State Governments and other concerned parties before making recommendations to the Government. Pay Commission plays an important role in determining the salary structure, benefits and allowances for government employees. Most of the units owned by state governments implement the recommendations of the Commission. According to the information, this move will benefit about 50 lakh central government employees, including those working in the defense sector. Apart from this, there will be an increase in the pension of about 65 lakh pensioners.
How many employees of Delhi will benefit?
This will benefit approximately four lakh employees in Delhi alone. Assembly elections are to be held in Delhi on 5 February 2025, which includes Defense and Delhi Government employees. Sources said the salary increases of Delhi government employees generally exceed the Central Pay Commission, which will improve the quality of life of government employees and provide a significant boost to consumption and economic growth. The expenditure under the Seventh Pay Commission in the financial year 2016-17 was Rs. 1 lakh crore increased
What can be the minimum salary?
Rohitashv Sinha, partner, advocate and lawyer, King Stubb & Kasiva, said in a media report that in most cases, pay commissions are constituted every 10 years to assess and revise the salaries of central government employees. 7th Pay , it came into force in January 2016. In which the minimum basic pay using fitment factor 2.57 is Rs. 7000 to Rs. 18,000 were made…
The pay revision is likely to be implemented through the Central Civil Services Rules 2025
It is believed that in the 8th Pay Commission, there will be a huge increase of 186 percent in the basic salary, due to which the minimum basic salary can be Rs 51,480 per month. He said that it seems that the fitment factor for the 8th Pay Commission is 2.86. The pay revision is likely to be implemented through the Central Civil Services (Revised Pay) Rules, 2025. This may also increase pension and other retirement benefits like EPF, gratuity etc.
How to calculate salary from fitment factor?
How can Central Government employees calculate salary increment based on the fitment factor announced by the 8th Pay Commission? Let us try to understand this through an example. Suppose your basic salary is currently Rs 40,000 per month and the 8th Pay Commission has recommended a fitment factor of 2.5. Based on this, your basic salary will increase to Rs 1 lakh per month. However, dearness allowance will not be given in the initial period as it is generally recommended by the Pay Commission. As per the recommendations of the Pay Commission, dearness allowance is generally added to the salary in future years. Other allowances are also subject to change as per the recommendations of the Pay Commission.
Recommendations made by the previous Pay Commission
7th Pay Commission (February, 2014 to November, 2016)
Chairman :Justice A.K.Mathur
minimum wage : Increase to Rs. 18,000 per month
maximum salary : Rupee. 2,50,000 per month
special recommendation : A new pay matrix recommended to replace the grade pay system
special features : Focus on benefits and work-life balance.
Beneficiary : More than one crore (including pensioners)
Sixth Pay Commission (October, 2006 to March, 2008)
Chairman : Justice B.N. Sri Krishna
special feature :Pay Band and Grade Pay introduced
minimum wage : Rs 7,000 per month
maximum salary : Rs 80,000 per month
Incentive : Emphasis on performance related incentives
Beneficiary :about 60 lakh employees
5th Pay Commission (April, 1994 to January, 1997)
Chairman : Justice S. Ratnavel Pandian
minimum wage : Recommended per month Rs. 2,550.
special number : Suggestion to reduce the number of pay scales, focus on modernization of government offices.
Beneficiary :about 40 lakh employees
Fourth Pay Commission (September, 1983 to December, 1986)
Chairman : P.N. Singhal
minimum wage : Recommended per month Rs. 750
special feature : Focus was on reducing disparity in pay across ranks. A performance based pay structure was introduced
Beneficiary : more than 35 lakh employees
69 times increase in 40 years
If the minimum basic pay under the 8th Pay Commission becomes Rs 51,480, then the salary of central employees will increase 69 times in the last 40 years. According to the information, the Fourth Pay Commission was implemented 40 years ago i.e. in 1986. In which the minimum basic salary was Rs 750. This means that from then till the 8th Pay Commission the minimum basic pay would have increased by 6,764 per cent. This means that from the 4th Pay Commission to the 8th Pay Commission, the basic pay of central employees would have increased 69 times.
Why is Pay Commission formed?
Generally, every 10 years the Central Government constitutes a Pay Commission to revise the salaries of its employees. Since 1947, seven pay commissions have been constituted. The Pay Commission also recommends amendments in the Dearness Allowance and Dearness Relief formulas for the purpose of compensating central government employees and pensioners for inflation. State governments also revise the salaries of their employees on the lines of the Central Pay Commission.
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