8th Pay Commission: From ₹55 to ₹18,000, how minimum basic pay changed across 7 Pay Commissions

The 8th Pay Commission under the chairmanship of Justice Ranjana Prakash Desai has now completed more than half of its allocated time. The commission was constituted on 3 November 2025 and was given 18 months by the Union Cabinet to compile a report with recommendations on salaries, pensions, allowances, and other associated benefits for central government employees and pensioners.

Since its constitution, the 8th Pay Commission has held several important meetings and discussions with unions, associations, and stakeholders from various states and union territories across the country, including Delhi, West Bengal, and Odisha.

According to the official website of the 8th Pay Commission, similar meetings are scheduled in Chennai, Puducherry, Chandigarh, and Rajasthan in the coming months. These meetings will provide stakeholders with an opportunity to air their ideas, grievances and views with the 8th Pay Commission panel.

In the meetings held so far, the core areas of discussion highlighted by prominent unions were basic pay, fitment factor, employee morale, pension reforms, and a host of other essential issues.

In light of the same, the evolution of government salaries over the past seven decades is a critical metric that can provide meaningful insights into how the government might decide on future payments and salary revisions. This metric offers a useful perspective on how central government pay has changed and what employees may expect from the next revision.

Furthermore, since the first Pay Commission, the minimum basic pay of central government employees has risen from just ₹55 a month to ₹18,000. In nominal terms, that is an increase of more than 325 times.

The journey began with the 1st Pay Commission in 1946-47, which fixed minimum pay at ₹55. The 2nd Pay Commission raised it to ₹80, while the 3rd Pay Commission took it to ₹196. The minimum basic pay then increased to ₹750 under the 4th Pay Commission, ₹2,550 under the 5th Pay Commission, ₹7,000 under the 6th Pay Commission, and finally ₹18,000 under the 7th Pay Commission, which became effective in 2016. To better acknowledge the profound change over the years, let us look at the evolution of the minimum basic pay.

Note: The figures above are presented in nominal rupee terms. They should not be interpreted as a direct comparison of purchasing power across decades, as inflation, cost of living, allowances and changes in the salary structure have also significantly affected employees’ overall compensation.

Pay structure has changed along with salaries

The rise in minimum pay is only one part of the story. Successive Pay Commissions have also attempted to make the salary structure simpler, easier to apply and more transparent.

Earlier systems relied heavily on individual pay scales. The 6th Pay Commission introduced pay bands and grade pay, while the 7th Pay Commission replaced these with the pay matrix and different pay levels. This changed the way an employee’s position, compensation, promotion and overall progression were represented within the government pay structure.

Another important milestone was the 6th Pay Commission, which led to a substantial increase in real pay, making it one of the most significant revisions in the history of Central government salaries.

Keeping these factors in mind, let us now look at the demands of prominent unions before the 8th Pay Commission panel and how these demands can shape future compensation for government employees and pensioners.

What are the demands of prominent unions on fitment factor and basic pay?

Several prominent unions and employee organisations have put forward different demands on the fitment factor and minimum basic pay, with proposals ranging from 3.0 to 4.0. Some of these demands are briefly discussed below:

Note: These figures reflect demands made by prominent employee unions and organisations and are illustrative only. For the latest demands, refer to their official memorandums.

What could the 8th Pay Commission change?

These demands, along with further developments in the 8th Pay Commission consultative meetings, have now become the focus of the central government employees and pensioners. Employees and pensioners are awaiting a meaningful salary revision. This becomes even more critical, as employees generally have only one chance in a decade to present their grievances and aspirations to the pay commission panel and seek an appropriate pay revision in line with inflation.

Core expectations from the 8th Pay Commission continue to include a higher minimum basic pay, changes to the fitment factor, further revisions to existing pay structures, and meaningful pension reforms.

However, figures being discussed by employee organisations or analysts should not be treated as final. They are just demands for now, until an official confirmation comes on any aspect. The actual increase in salaries and pensions will depend on the 8th pay commission’s recommendations and the government’s decision on them.

These recommendations are expected to be tabled by the 8th Pay Commission panel before the Union Cabinet in May-June 2027. Furthermore, in the earlier three commissions, the fitment factor has also evolved, with the figure staying at 1.86 and 2.57 in the 6th and 7th Pay Commission, respectively. It is now to be seen what fitment factor multiple the 8th pay commission decides on and how that will impact the basic payments of serving employees and pensioners over the next decade.

Finally, the history of the seven previous commissions and the evolution of basic pay within them show that each revision has brought both higher pay and changes to the structure by which salaries are calculated. The 8th Pay Commission is expected to continue that evolution.