Centre likely to announce in Budget 2025; Check what employees and pensioners can expect as minimum basic salary

The new pay commission proposes to revise the salaries of government employees, and pensioners will also benefit from the revision simultaneously. The government makes the decision to revise salaries based on inflationary trends and other economic factors.

Central government employees are anxiously awaiting the announcement of the 8th Pay Commission, as it has been a trend for the Centre to announce a new pay commission every ten years. Employees had anticipated the announcement in the 2024 budget, but it did not happen.

The new pay commission proposes to revise the salaries of government employees, and pensioners will also benefit from the revision simultaneously. The government makes the decision to revise salaries based on inflationary trends and other economic factors.

A few days ago, the Centre increased the Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners by 3%. Now, the DA has reached 53%. This hike is effective from July 1, 2024, and employees and pensioners will receive arrears for three months before Diwali.

If sources are to be believed, the Centre may make an announcement in the 2025 budget. A central leader stated that it would be appropriate to form a new pay commission after the budget speech. . The new pay commission will take time to present its recommendation reports to the government. The 7th Pay Commission took more than 18 months to prepare its report of recommendations.

Central government employees are keen to know the revision scale and other benefits in the 8th Pay Commission. It was observed during the transition from the 6th Pay Commission to the 7th Pay Commission that the government set a fitment factor of 2.57, despite employee unions demanding a fitment factor of 3.68.

The salary scale for employees saw a rise in the minimum basic pay from Rs 7,000 to Rs 18,000, representing a 2.57-fold increase. Retirees also benefited from this change, as their minimum pension increased from Rs 3,000 to Rs 9,000. Some reports suggest that the Centre may introduce a fitment factor of 1.92 in the 8th Pay Commission.