If 8th Pay Commission is approved by the government, the changes under the 8th Pay Commission are likely to take place in January next year.
8th Pay Commission: Central government employees and pensioners are eagerly waiting for the announcement of the formation of the 8th Pay Commission from the Prime Minister Narendra Modi-led government. Once formed, this commission will offer recommendations for salary and pension adjustments in line with the country’s current economic landscape.
It is noteworthy that no official confirmation has been made by the government; however, the announcement is expected during the upcoming Union Budget. If it is approved by the government, the changes under the 8th Pay Commission are likely to take place in January next year. The commission is likely to bring major changes in salary hikes and welfare measures for central government employees and their family members.
8th Pay Commission: Proposed Salary Increase
It is recommended by the National Council of the Joint Consultative Machinery (NC-JCM) that a salary hike for the employees is based on a proposed fitment factor of 2.86. if it is adopted by the Central Government, would result in salaries hike by 2.86 times, as per recent reports.
The term ‘fitment factor’ is used as a determining yardstick for recalculating salaries and pensions. As per the stipulations of the 7th Pay Commission, they pegged the fitment factor at 2.57. Consequently, this catapulted the baseline salary from Rs 7,000 to a whopping Rs 18,000.
If the 2.86 fitment factor is implemented, the minimum basic salary of central government employees is expected to increase from Rs 18,000 to 51,480.
8th Pay Commission: Impact on Pension
The proposed changes are going to make a difference to retired employees also. As of now, the lowest pension amount is Rs 9,000, decided based on the 7th Pay Commission’s adjustment factor of 2.57. With the introduction of an updated adjustment factor of 2.86, the base pension could go up to as much as Rs 25,740—bringing a big boost to those in their golden years.
8th Pay Commission: Dearness Allowance and Perks
In addition to salary and pension changes, dearness allowance (DA) and other perks are expected to be revised in alignment with the updated basic salary. DA plays a crucial role in offsetting inflation and is typically reviewed twice a year.
Additionally, with salary and pension revision, dearness allowance (DA) and other perks are also likely to get changed as per the updated basic salary. It is noteworthy that, Dearness Allowance (DA) is essential for mitigating inflation and is usually revised biannually.
8th Pay Commission: Unified Pension Scheme
The Central Government is also expected to introduce the Unified Pension Scheme (UPS) from April next year. Under UPS, pensions will be calculated as per employee’s salary over the 12 months preceding retirement.
8th Pay Commission: Official Announcement
Amid the ongoing speculations regarding the 8th Pay Commission, both working and retired employees anticipate that the next Union Budget will incorporate their concerns. These possible updates could significantly improve the financial situation and overall quality of life for those working at the centre or living on their pensions.
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