The 8th Pay Commission is expected to increase the salary of employees by 25 to 35 percent. Apart from this, allowances like Dearness Allowance (DA), House Rent Allowance (HRA) and Travel Allowance (TA) are also expected to increase.
The Central Government has recently approved the formation of the 8th Pay Commission, which is an important step to increase the salaries, allowances and gratuity of government employees and pensioners. This decision will benefit about 49 lakh central government employees and 65 lakh pensioners.
Why is the 8th Pay Commission necessary
This commission will mainly recommend the salary and pension of government employees, which is in line with the current economic conditions and inflation rates. The term of the previous 7th Pay Commission is ending in 2026, so this step is necessary.
Increase in gratuity
The maximum limit of gratuity is expected to increase under the 8th Pay Commission. Currently this limit is 20 lakhs, which can be increased to 25 to 30 lakhs. Gratuity is calculated on the basis of the basic salary and dearness allowance of the last month. For example, if an employee’s basic salary is 18,000 and he works for 30 years, then his gratuity will be around 4.89 lakhs. But according to the new fitment factor, if it increases from 2.57 to 2.86, then the gratuity figure can reach around 12.56 lakhs.
Increase in salary and allowances too
The salary of central employees is likely to increase from 25 per cent to 35 per cent due to the 8th Pay Commission. Apart from this, allowances like Dearness Allowance (DA), House Rent Allowance (HRA) and Travel Allowance (TA) are also expected to increase. Retirement benefits for pensioners can also increase by 30 per cent.
Effect of fitment factor
The effect of fitment factor will also be important in the 8th Pay Commission. The fitment factor in the 7th Pay Commission was 2.57, which increased the minimum basic salary from 18,000 to 46,620. If the fitment factor increases in the new commission, the minimum basic salary can reach 51,000. This will not only benefit the central employees directly, but it will also improve the economy as it is likely to increase expenditure.
