8th Pay Commission Salary Every decade, a new Pay Commission reshapes the financial landscape for nearly 50 lakh central government employees and 70 lakh pensioners. As anticipation builds for the 8th Pay Commission, it is instructive to see how past revisions have responded to inflation.
The 5th Pay Commission (1996) more than doubled salaries, creating a sharp jump in household consumption but also straining government finances. The 6th Commission (2006) introduced structural changes, aligning pay bands with market benchmarks, though it sparked debates about disparities across cadres. The 7th Pay Commission (2016) adopted a more cautious stance, citing fiscal discipline, but employees widely complained that the 2.57x fitment factor and 14% salary hike lagged behind the actual cost of living increases.
With consumer prices, rents, and healthcare costs rising steadily, employee unions have been pressing for the 8th Pay Commission to ensure a more realistic wage structure. Analysts warn that if the salary hikes fail to keep pace with inflation, disposable income erosion could impact both savings and consumption trends.
Thus, the 8th Pay Commission stands at a critical crossroads — expected not only to address inflation but also to correct perceived gaps left by its predecessors.
