8th Pay Commission: Are you a central government employee? We have an important update for you. You can find an important update on the 8th Pay Commission in this post.
8th Pay Commission: Recently, the central government issued a notification for the 8th Pay Commission. The government is going to start the formal process for this soon. The pay commission is said to start its work from April 2025. What is the possible pay hike? How much will the pension increase be?
Discussions regarding the 8th Pay Commission for central government employees and pensioners are in full swing. There have been speculations about its formation for the past few days, and now a major update has come out regarding it.
The government is set to start the formal process for the 8th Pay Commission soon. Sources say the pay commission is likely to start its work from April 2025. After this, a study will be conducted on the new pay structure related to salary and pension hike of central government employees.
Central government employees have been waiting for a salary hike for a long time. Generally, pay commissions are formed once in 10 years. The 7th Pay Commission came into effect from January 1, 2016. Therefore, the new Pay Commission is likely to come into effect from January 1, 2026. The government is working towards it expeditiously.
And top officials in the Finance Ministry have indicated that the commission may start its work from April 2025 after the 8th Pay Commission’s Terms of Reference (TOR) is approved by the Union Cabinet. After this, the commission will consider the pay hike formula and fitment factor. However, as it takes about 18 months to implement the recommendations, it may take some time to implement it.
Once the Terms of Reference (ToR) are approved, the members of the commission will be appointed and data collection will begin. The commission may submit recommendations for increasing the salaries of pensioners and government employees by the end of 2025. The government may make a financial allocation for this commission in the Union Budget 2026. The government may then implement it in the financial year 2026, it is said.
The biggest feature of the 8th pay group is the fitment factor. It is said that the fitment factor may be fixed at a minimum of 1.90. If this happens, the salaries of central government employees may directly increase by 90%.
Wage increase calculation: If the fitment factor is fixed at 1.90, the current minimum wage of Rs. 18,000 will increase to Rs. 34,200. Those who are getting a basic salary of Rs. 56,100 will now get Rs. 1,06,590. Similarly, those who are getting a basic salary of Rs. 1,50,000 will get Rs. 2,85,000.
If the fitment factor is set at 2.50, the minimum wage of Rs. 18,000 can be increased to Rs. 45,000. Similarly, people who are getting basic wage of Rs. 1,50,000 will get Rs. 3.75,000.
How much will pensioners get? Currently, the minimum pension is Rs. 9,000 and the maximum pension is Rs. 1,25,000. If the fitment factor is fixed at 1.90, the new pension could reach from Rs. 17,100 to Rs. 2,37,500.
If the 8th Pay Commission comes into effect, more than 50 lakh central government employees will get a pay hike and more than 65 lakh pensioners will get the benefit of pension hike. State governments also usually accept the recommendations of the Central Pay Commission. Therefore, this will benefit state employees as well.
Disclaimer: This post is written for informational purposes only. It does not guarantee any salary hike or pension hike available through the 8th Pay Commission. It is recommended to consult official government websites for the latest and accurate information.
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