Government Employees salary increament 2025: Exciting news for central Government employees and pensioners is that there will soon be a massive salary increase. The government may make an official announcement regarding an increase in dearness allowance as well as the 8th Pay Commission that would be beneficial for hundreds of thousands of employees directly. Reports suggest a big jump in salaries and pensions could well be on the cards. Find out what the salary increase may be and the latest updates here. Get the full update below.
What Is The Update?
In a great moment for central employees and pensioners, approval of the 8th Pay Commission on January 16, 2025, under the chairmanship of the Modi government, has brought joy for approximately 60 lakh employees. While on the one hand, the Karmcharis are anxiously waiting for the arrival of this new commission, on the other hand, just before Holi, DA (Dearness Allowance – DA) enhancement is also going to be bestowed as a gift. The decision for DA from January to June is expected; thereby, a significant salary jump is likely for the employees.
Change In Fitment Factor
When the new Pay Commission is implemented, the Fitment Factor is also revised under it. The Fitment Factor is the basis through which the basic salary of the employees is decided. Earlier under the Seventh Pay Commission, the Fitment Factor was raised from 1.86 to 2.57 which compensated the employees quite well. The next commission, however, is expected to keep the Fitment Factor in the range of 1.92 to 2.86. If this is to happen, the minimum basic salary of the cental government employees will cadge up from Rs 18,000 to about Rs 51,480 per month. The minimum pension of the pensioners in the same light is possibly going to increase from Rs 9,000 to Rs 25,740 per month. This will not only give financial relief to the employees but also enhance their quality of living.
History And Past Figures Of Pay Commission
The first Pay Commission was initially established in the year 1947 in India. Every Pay Commission passed since that time has been updating the basic salary to keep it in touch with relations of the economy, inflation and other needs of the employees. Here is a brief history of some of the major pay commissions of the past editions:
1. The 7th Pay Commission, which covered the years 2014-2016:
- Basic Salary: Rs 18,000
- Maximum Salary: Rs 2,50,000
- An entire pay matrix was introduced by this commission in place of the old grade pay system.
- More than 1 crore Kendriya Karmchari and pensioners benefited under this commission.
2. 6th Pay Commission (2006-2008):
- Basic Salary: Rs 7,000 per month
- Maximum Salary: Rs 80,000 per month
- The introduction of Pay Bands and Grade Pay introduced reforms to the system of pay structure.
- More than 60 lakh Kendriya Karmchari and pensioners were beneficiaries during this time.
3. 5th Pay Commission (1994-1997):
- Basic Salary: Rs 2,550 per month
- Maximum salary: Rs 26,000 per month
- This commission has gone through the entire manner of salary structures with a view to reducing economic inequality among the employees.
Consequences Of Hike In salary
Immediate increase in salary of central employees. The employees would be relieved as they would have less expenses, and it is also expected that consumer spending will also go up. Though, some analysts in finances do believe that the increased salary of government employees can also lead to an increase in the inflation rate.
Welcomed Sign For Increase In DA
The Union Cabinet approved an addition of 3 percent on the earlier approved DA and Dearness Relief (DR) for the July half year in October last year. Now, the anticipation is that the Cabinet meeting, which will be held before Holi, will increase DA by 3 to 4 percent. This could result in the dearness allowance rising from 53 percent to about 57 percent. It would financially relieve and help employees in the rising inflation.
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