The agenda of the 8th Pay Commission revolves around the revision of salaries and pensions of the government employees and pensioners in India. Reportedly, the pay hike would be approximately 50%, which is going to be a very massive financial jump for millions of employees or pensioners.
What Is The 8th Pay Commission?
The Pay Commission is constituted by the Government of India after every ten years to review and make changes in the salary structure of central government employees and pensioners. The 7th Pay Commission implemented in 2016 had increased salaries and pensions by as much as a staggering 2.57 times fitment factor. This had further escalated the hopes of employees awaiting another round of enhancement by the 8th Pay Commission due for implementation probably by 2026.
Expected Salary Increase Under 8th Pay Commission
The experts had observed that this time the fitment factors might go up between 3.00 or 3.50, making a whopping 40% to 50% increase in salary. The theory of salary hike for the government employees goes like this for:
- With the existing basic being ₹18,000, the due fitment factor of 3.00 will increase it to ₹54,000
- Meanwhile, 3.50 will increase that same income with a fitment factor of ₹63,000.
- Higher salary grades are being proposed for greater amounts of gross increase in salary.
Effects on Pensioners
Well, with the 8th Pay Commission, the pensioners will also be in for increased pension rates, which will be computed against an increase of salaries. It means that with the expected 50% hike possible, much more pension amounts will be thus provided for the retired government employees from the previous working government to satisfy their needs, thereby securing them financially at their post-retirement lives.
Other Benefits for Employees
- The enhancing other allowances is one such thing that is most likely recommended by the 8th Pay Commission and include:
- Adjustment of General Dearness Allowance (DA)
- Actual revision of House Rent Allowance (HRA)
- Related travel and medical benefits
- Of retirement and gratuity enhancement
When Is The 8th Pay Commission Likely To Be Set Up?
Not so confirmed, but as anticipated, the government would probably set up the 8th Pay Commission in 2024 or 2025, and salary revisions would start in 2026.
Conclusion
The 8th Pay Commission pays away its kind of salary revision, which will take more than around 50%. This thus directly benefits government employees and pensioners alike. In light of inflation and the state of the overall economy, this will weigh very significantly toward providing financial stabilization to millions of government workers in India in the preceding years.
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