In India there is a commission, which is constituted every ten years for review of salaries of government employees. Ever since the establishment of the 8th Pay Commission, back in 2025, there has been curiosity among central employees and pensioners. The aim of this commission will be to review the salary, allowances and pension structure according to the current economic situation. The government has taken significant steps towards forming the commission to expedite such processes which are believed to bring relief to lakhs of employees.
Key Changes Of The New Pay Commission
Under 8th Pay Commission, the most relevant thing is identification of the fitment factor for revision. In the last 7th pay commission, the fitment factor was 2.57 and actual increase was 14.2% in the salary. This time around the employee organizations are calling for fitment factor 2.86, which might increase the salary by some margin. Yet, experts believe the government is contemplating on maintaining it between 1.92 to 2.28. The minimum basic pay may increase to ₹34,560 if the fitment factor is made at 2.86.
Revisions In Pension And Allowances
There are high chances that the pension structure will also be altered under 8 th Pay Commission. The government is contemplating absorption of dearness allowance (DA) for pensioners into basic pay thus frequent increment in pension will occur automatically. In addition, house rent allowance (HRA) and transport allowance will also be revised and this will give extra financial blessings to the employees.
Prospects Of Salary Hike
However, if government agrees to have a fitment factor of 2.86, the pay of an employee whose existing basic is ₹20000 may be increased up to ₹57200. However, the final decision by the government is yet to be done with an official announcement awaited. Experts believe that a 40% – 50% hike in salary is likely to happen but will solely be based on the fitment factor and other amendments.
Conclusion
The 8th Pay Commission 2025 is set to bring much relief to government employees and pensioners. Hike in salary, amendment to allowances, and pension structure will benefit lakhs of employees. The final declaration of the government is awaited, and after this it will become clear how significant the salary increase will be and what new rules will be applied.
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