8th Pay Commission : The central government has approved the establishment of the 8th Pay Commission, which is expected to bring significant benefits for central government employees and pensioners.
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The 8th Pay Commission is likely to use a fitment factor of 2.86 to increase the pensions of retired employees. If this proposal is implemented, there will be a substantial rise in the monthly pension amounts.
Huge Increase in Minimum and Maximum Pensions:
As per the recommendations of the 7th Pay Commission, the current minimum basic pension for retired central government employees is ₹9,000 per month, while the maximum pension is ₹1,25,000 per month. With the 8th Pay Commission’s proposed fitment factor of 2.86, the minimum pension could rise by 186%, bringing it up to approximately ₹25,740 per month. Additionally, the maximum pension could increase from ₹1,25,000 to ₹3,57,500 per month.
Increase in Dearness Allowance (DA) and Relief:
Moreover, there will be an increase in the Dearness Allowance (DA) and Dearness Relief (DR) to help offset the effects of inflation. Currently, Dearness Relief is set at 53% of the basic pension. Typically, Dearness Relief is revised twice a year to keep up with inflation.
New Pay Commission Likely to Be Implemented by 2026:
The process of establishing the new pay commission will likely begin in 2025, with the recommendations to be reviewed before the 7th Pay Commission’s tenure ends on January 1, 2026. During the 2016-17 financial year, the 7th Pay Commission led to an increase in government spending by ₹1 lakh crore.
Possible Salary Increase for State Government Employees:
Similar to the central government, state governments also revise the salaries of their employees based on the Central Pay Commission’s recommendations. Therefore, once the 8th Pay Commission’s recommendations are implemented, state government employees may also see a salary increase. (8th Pay Commission)
