Every time news about a new Pay Commission breaks, government employees across India start calculating their possible salary hikes. And now, with the 8th Pay Commission 2025 making headlines, another group is quietly asking — “Will bank employees also see their pay rise this time?”
It’s a fair question. After all, lakhs of people work in public sector banks, handling everything from your savings to government subsidies. But here’s the truth — while Pay Commission recommendations influence many government-linked sectors, bank employees follow a different rulebook.
How Are Bank Employees’ Salaries Decided?
Here’s the thing — public sector banks aren’t directly governed by the Central Government’s Pay Commission. Their salaries and pensions are fixed through something called a bipartite settlement.
This process happens between the Indian Banks’ Association (IBA) and the bank employees’ unions. In simple terms, it’s a negotiated agreement, not a government-imposed one.
So, while the Eighth Pay Commission may guide salary expectations, bank employees won’t automatically get a raise under its recommendations.
What We Know About the 8th Pay Commission
The 8th Pay Commission, chaired by former Supreme Court Justice Ranjana Prakash Desai, is expected to finalize its recommendations within 18 months. If everything goes as planned, it could come into effect from January 2026 — benefiting over 50 lakh central government employees.
One major factor everyone’s watching is the fitment factor — the formula used to calculate new salaries. In the 7th Pay Commission, it was 2.57. Experts believe it could rise to 2.86 this time.
If that happens, the basic pay of a government employee earning ₹25,000 could increase to around ₹71,500, which is a big jump.
So, What About Bank Employees?
For now, bank employees will need to be patient. Their salary revision process happens separately, roughly every five years, through negotiations between unions and the IBA.
However, bank unions are increasingly pushing for a unified pay framework — one that aligns with the government’s Pay Commission model. The argument is simple: bank employees serve the same nation and deserve similar periodic benefits.
While this demand hasn’t yet been accepted, growing discussions around the 8th Pay Commission might revive talks for a fairer and more standardized structure in the banking sector.
What This Means for You
If you’re a bank employee, your next big pay revision will depend on IBA-union negotiations, not the Pay Commission’s outcome. But the ripple effect of the 8th Pay Commission could still set a positive tone for better settlements in the future.
In short — government employees might see the immediate benefit, but bankers shouldn’t lose hope. The demand for parity is growing louder each year, and this time, it might finally get the attention it deserves.
Frequently Asked Questions
1. Will bank employees get a salary hike under the 8th Pay Commission 2025?
No. Public sector bank employees are not covered by the Pay Commission. Their salaries are decided through bipartite agreements between the IBA and employee unions.
2. What is the expected implementation date of the 8th Pay Commission?
The government is likely to implement it from January 2026, after reviewing the commission’s recommendations.
3. What is the new fitment factor expected under the 8th Pay Commission?
It’s expected to rise from 2.57 to 2.86, which could significantly increase basic pay for government employees.