Potential Salary Increase of 25-30% with 8th Pay Commission
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Synopsis
The 8th Pay Commission may increase salaries for Central government employees by 25-30% and pensions correspondingly. This measure, set to benefit millions, aims to keep government pay competitive and tackle inflation.
Key Takeaways
- 8th Pay Commission may boost salaries by 25-30%.
- Affecting 50 lakh employees and 65 lakh pensioners.
- Potential basic salary rise above Rs 40,000.
- Fitment factors expected between 2.6 and 2.85.
- Regular revisions reflect the government’s commitment.
New Delhi, Jan 17 (NationPress) The 8th Pay Commission is set to potentially raise the salaries of Central government employees by 25-30 percent along with proportional increases in pensions, as noted by industry experts on Friday.
Since the last salary increment took effect on January 1, 2016, it is anticipated that the next salary revision will occur on January 1, 2026, following the standard practice of revising salaries for Central government staff every decade.
The 8th Pay Commission plays a crucial role in adapting to changing economic conditions and ensuring that government salaries and pensions remain attractive.
This initiative is expected to positively impact approximately 50 lakh Central government employees, including those in defense, as well as over 65 lakh pensioners, according to official sources.
Historically, the 7th Pay Commission introduced a fitment factor of 2.57, resulting in an average salary increase of 23.55 percent and aligning pensions with the 'One Rank, One Pension' scheme. Prior to that, the 6th Pay Commission utilized a factor of 1.86.
“For the 8th Pay Commission, a fitment factor between 2.6 and 2.85 is anticipated, which could lead to salary increases of 25-30 percent and proportionate pension hikes,” stated Neeti Sharma, CEO of TeamLease Digital.
The basic minimum salary is projected to exceed Rs 40,000, along with various perks, allowances, and performance incentives.
“These adjustments are vital to address inflation, rising living expenses, and the growing disparity between public and private sector wages. Additionally, the updated pay scales are likely to boost disposable incomes, encouraging consumption and positively impacting the economy,” Sharma remarked.
Regular salary revisions signify the government’s dedication to maintaining a fair system that appreciates its workforce and ensures their financial independence.
The Cabinet recently approved the creation of the 8th Pay Commission, which will evaluate salary increases for Central government employees and pension payments.
Since 1947, seven pay commissions have been established, with the 7th Pay Commission taking effect in 2016 and set to conclude in 2026.
By initiating the 8th Pay Commission in 2025, there is ample time to gather recommendations before the end of the 7th Pay Commission term, according to officials.
The process will include extensive consultations with state governments, the Central government, public sector undertakings (PSUs), and various stakeholders. A chairman and two members will be appointed for the commission shortly.
