8th Pay Commission: A Look at How Salaries Have Increased Since India’s First CPC

Union Cabinet Approves 8th Pay Commission

The Union Cabinet, led by Prime Minister Narendra Modi, has officially approved the formation of the 8th Pay Commission on January 16, 2025. This decision aims to revise the salaries of nearly 50 lakh central government employees and the allowances of 65 lakh pensioners.

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Expected Salary Hike: Fitment Factor & Impact

According to media reports, the fitment factor for the 8th Pay Commission is expected to be in the range of 1.92 to 2.86. If the 2.86 fitment factor is approved, it would significantly increase salaries and pensions:

• Minimum Basic Salary: ₹18,000/month → ₹51,480/month
• Minimum Pension: ₹9,000/month → ₹25,740/month

Timeline of Previous Pay Commissions & Salary Revisions

The previous seven pay commissions have played a crucial role in shaping government employees’ salaries and benefits. Here’s a brief timeline of their impact:

7th Pay Commission (2016)

• Minimum Salary: ₹18,000/month
• Maximum Salary: ₹2,50,000/month
• Key Features:
  • Introduced a new pay matrix replacing the grade pay system.
  • Focused on allowances and work-life balance.
  • Beneficiaries: Over 10 million employees (including pensioners).

6th Pay Commission (2006)

• Minimum Salary: ₹7,000/month
• Maximum Salary: ₹80,000/month
• Key Features:
  • Introduced Pay Bands and Grade Pay.
  • Emphasized performance-related incentives.
  • Beneficiaries: Nearly 6 million employees.

5th Pay Commission (1996)

• Minimum Salary: ₹2,550/month
• Maximum Salary: ₹26,000/month
• Key Features:
  • Suggested reducing the number of pay scales.
  • Focused on modernizing government offices.
  • Beneficiaries: Around 4 million employees.

4th Pay Commission (1986)

• Minimum Salary: ₹750/month
• Maximum Salary: ₹8,000/month
• Key Features:
  • Addressed salary disparities across ranks.
  • Introduced a performance-linked pay structure.
  • Beneficiaries: Over 3.5 million employees.

3rd Pay Commission (1973)

• Minimum Salary: ₹185/month
• Maximum Salary: ₹3,500/month
• Key Features:
  • Focused on salary parity between public and private sectors.
  • Addressed inequalities in the pay structure.
  • Beneficiaries: About 3 million employees.

2nd Pay Commission (1957)

• Minimum Salary: ₹80/month
• Maximum Salary: ₹3,000/month
• Key Features:
  • Aimed at balancing the economy and living costs.
  • Introduced the ‘socialistic pattern of society’.
  • Beneficiaries: Approximately 2.5 million employees.

1st Pay Commission (1946)

• Minimum Salary: ₹55/month
• Maximum Salary: ₹2,000/month
• Key Features:
  • Focused on rationalizing pay structure post-independence.
  • Introduced the concept of a ‘living wage’.
  • Beneficiaries: Around 1.5 million employees.