8th Pay Commission: In a promising development for central government employees and pensioners, the Modi government is reportedly preparing to establish the 8th Pay Commission before 2026. According to media reports, a major decision regarding the new pay commission could be made by the end of this year. If implemented, the 8th Pay Commission is expected to bring a substantial increase in salaries, potentially up to 44.44%.
The central government typically sets up a new pay commission every 10 years to review and revise salaries. The Seventh Pay Commission, which was constituted in February 2014, saw its recommendations implemented from January 1, 2016. With the term of the 7th Pay Commission set to end on December 31, 2025, preparations for the 8th Pay Commission are already underway.
Anticipated Salary Increases
Reports suggest that the 8th Pay Commission could be constituted in 2025, with its recommendations expected to come into effect from January 2026. If this timeline is followed, the new pay structure could lead to significant salary hikes. For level 1 employees, a potential salary increase of up to 34% is projected, while level 18 employees could see their salaries rise by up to 100%. Under the proposed changes, the salary for level 1 employees could reach Rs 34,560, and for level 18 employees, it could soar to Rs 4.8 lakh, with a fitment factor of 1.92.
Pensioners under the Unified Pension Scheme (UPS) will also benefit from these changes. The UPS will set pensions at 50% of the average monthly salary for the 12 months preceding retirement. With a projected 20% increase in dearness allowance (DA) by 2029, a level 1 employee’s pension could amount to approximately Rs 20,736.
Ongoing Demand for the 8th Pay Commission
In recent months, various employee organizations have urged the central government to expedite the formation of the 8th Pay Commission. During the budget session, multiple groups, including the Employees Federation, National Council of Joint Advisory Machinery, and Indian Railway Technical Supervisor Association, submitted proposals to the Central Government advocating for the new pay commission. Although Finance Minister Nirmala Sitharaman did not address these concerns in the budget, Rajya Sabha MPs Ramjilal Suman and Javed Ali Khan raised the issue during the monsoon session. In response, Minister of State for Finance Pankaj Chaudhary indicated that there are currently no formal proposals under consideration for the 8th Pay Commission, citing that only two representations have been received.
As the discussions continue, employees and pensioners remain hopeful for a favorable decision that could significantly enhance their financial well-being.
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