8th Pay Commission Important Update: THIS State government prepares budget estimates based on…, it’s Not Assam, Bengal, Delhi, the name is…

Under the 7th Pay Commission, a multiplication factor of 2.75 was used to calculate the revised pay, meaning the basic salary was multiplied by 2.75 to determine the new pay scale.

Written by: Victor Dasgupta Edited by: Victor Dasgupta

Updated: July 16, 2025, 11:23 AM IST

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https://www.india.com/business/8th-pay-commission-madhya-pradesh-employees-pensioners-7th-pay-commission-provident-fund-dearness-allowance-mohan-yadav-finance-department-nirmala-sitharaman-7947458/ Copy

8th Pay Commission Latest Update

New Delhi: The Madhya Pradesh government is reportedly preparing the budget to implement salaries and pensions as per the 8th Pay Commission for around 7.5 lakh regular government employees and 4.5 lakh pensioners. An estimated 15 percent increase in salary and pension is being anticipated. It is important to note that the Modi government has already constituted the 8th Pay Commission and appointed its chairman.

The Mohan Yadav-led Madhya Pradesh government is also preparing budget projections for the coming years. A committee has also been formed in this regard. Currently, officials, employees, and pensioners in the state are being paid according to the 7th Pay Commission. Around 33 percent of the total annual budget is currently spent on this.

Here are some of the important details:

• The tenure of the 7th Pay Commission is set to end in December 2025.
• It is likely that the 8th Pay Commission may submit its report to the central government before that.
• Once approved, the Madhya Pradesh government will implement the 8th Pay Commission
• The states will assess their financial situation, and then they will consider the formula prescribed for central government employees.
• The government accepts the formula for salary and pension hikes, but allowances are often reduced.
• Under the 7th Pay Commission, a multiplication factor of 2.75 was used to calculate the revised pay, meaning the basic salary was multiplied by 2.75 to determine the new pay scale.
• At that time, the monthly salary increased by Rs 7,000 to Rs 18,000.

Government spending 33 percent of the budget on establishment expenses

The 8th Pay Commission could be fixed at around 3 to 3.25 percent, considering inflation and other factors. As a result, the state’s establishment expenditure — which currently accounts for 33 percent of the annual budget — may increase to 37 to 40 percent.

At present, the Finance Department has directed all departments to prepare establishment expenditure proposals assuming a 3 percent annual salary increase.