The anticipation surrounding the 8th Pay Commission continues to grow, especially after the recent dearness allowance (DA) hike for central government employees and pensioners. Many are wondering if the Centre will announce the formation of the new pay commission, which is expected to revise salaries and pensions based on inflationary trends and other economic factors. Historically, pay commissions have been implemented approximately every 10 years, leading to heightened expectations for an early 2025 announcement.
After a prolonged wait, the government announced a 3% increase in dearness allowance for central government employees, raising it to 53% of basic pay, effective from July 1, 2024. Employees and pensioners will receive arrears for three months in their October salaries, just ahead of Diwali, providing a timely financial boost.
According to a Union leader, the 8th Pay Commission is likely to be established early next year, possibly in the Union Budget 2025. Once formed, the commission will take time to finalize its recommendations, as was seen with the 7th Pay Commission, which took over 18 months to complete its report. The recommendations from the new commission could then be implemented in 2026, following the timeline set by previous pay commissions.
Under the 7th Pay Commission, the minimum basic pay for central government employees rose to Rs 18,000 per month, up from Rs 7,000, using a fitment factor of 2.57. Similarly, the minimum pension for retirees was raised to Rs 9,000 from Rs 3,500. Maximum salaries and pensions were set at Rs 2,50,000 and Rs 1,25,000, respectively. These revisions were based on the government’s decision to implement a lower fitment factor than initially demanded by employee unions.
Speculation suggests that the 8th Pay Commission may propose using a new fitment factor of 1.92, which could result in significant salary and pension revisions. If applied, this factor would increase the minimum salary from Rs 18,000 to approximately Rs 34,560, and the minimum pension could rise to Rs 17,280. However, these figures are not confirmed and will depend on the final recommendations of the commission.
The central government employees and pensioners are keenly awaiting more details on the potential salary revisions and the formal establishment of the 8th Pay Commission, which could be a major development in the upcoming Union Budget.
