8th Pay Commission to Potentially Increase Salaries by 25-30% and Pensions Proportionately
The 8th Pay Commission, when implemented, is expected to raise the salaries of Central government employees by 25-30 per cent and pensions proportionately, according to industry experts.
New Delhi: The 8th Pay Commission, when implemented, is expected to raise the salaries of Central government employees by 25-30 per cent and pensions proportionately, according to industry experts.
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Expected Salary Revision
The last pay hike for Central government employees came into effect on January 1, 2016. With salary revisions occurring every 10 years, the next revision is expected from January 1, 2026. The 8th Pay Commission will play a key role in addressing changing economic conditions and ensuring that government salaries and pensions remain competitive in the market.
Impact on Central Government Employees and Pensioners
The potential pay revision is expected to benefit around 50 lakh Central government employees, including defence personnel, along with over 65 lakh pensioners.
Speculated Fitment Factor and Salary Increases
For the 8th Pay Commission, experts speculate a fitment factor between 2.6 and 2.85, which could lead to a salary increase of 25-30 per cent and a corresponding increase in pensions. Neeti Sharma, CEO of TeamLease Digital, stated, “Such a revision is crucial to counter inflation, rising living costs, and the widening gap between public and private sector salaries.”
Enhanced Financial Benefits and Economic Stimulus
In addition to salary hikes, the minimum basic salary is expected to rise beyond Rs 40,000, along with enhanced perks, allowances, and performance pay. These revisions are not only meant to address financial needs but are also expected to stimulate consumption and provide a boost to the economy.
Also Read: Cabinet Clears Setting Up of 8th Pay Commission for Central Govt Employees
Government Commitment to Fair Revisions
The formation of the 8th Pay Commission was approved by the Cabinet on Thursday. The Commission will address the need to increase salaries for Central government employees and pensions for retirees. The government has pledged to ensure a fair and equitable system that values its workforce and promotes financial empowerment.
Timeline for Implementation
The 8th Pay Commission is expected to be established in 2025, ensuring sufficient time for recommendations to be made before the conclusion of the 7th Pay Commission’s tenure in 2026. The commission will involve consultations with state governments, Central government officials, public sector undertakings (PSUs), and other stakeholders. A chairman and two members for the commission will be appointed soon.
