th Pay Commission : From thoughts on the 8th pay Commission ringing up good news for all government employees across the length and breadth of the country, it is a very joyous environment considering the aberrant times of uncertainty regarding the 7th Pay Commission, which came into effect in 2016 and kept on looming the larger and brighter skies of payroll computation with every revision for employees and pensioners alike. With respect to anticipations and other current reports floodgating headlines, it seems that an announcement for 8th Finance Commission should not be far away now.
When Is The 8 Paying Commission Scheduled To Start?
However, now with no official pronouncement on the same by the central government, the Commissions are believed to be given life in the waning months of the decade, following the average cycle of ten years. The 8th Pay Commission is, therefore, most probably going to be set up by 2026. With clamor growing from various employee Unions and Pensioners Associations, they have further demanded that the announcement be made sooner while there is still time for revision in salaries, presumably in 2024 or 2025, before the general elections.
What Salary Hike Will Be Expected?
If the government approves the 8th Pay Commission, a general revision of salaries for central government employees is expected, with an increase of 30-35 percent over the present basic pay. The present fitment factor, as per the 7th Pay Commission, is 2.57, and it is expected to be increased to 3.68 or above for the 8th Pay Commission. This means that with basic pay of ₹20,000, it could go up to around ₹27,360 in this structure.
Then, House Rent Allowance, Travel Allowance, and all other medical facilities are going to factor in. And it’s the icing on the cake for lakhs of government employees across India, changing their financial outlook enormously.
Positive Impact On Pensioners
Besides the increase, the pensioners would get an equal mouthful from it. Since pensions are certainly determined based on the last salary drawn and the pay matrix, an increase in basic pay will automatically lead to an increase in pensionary benefits. Thus, the revision will be a blessing for all the retired employees being afflicted by increasing living expenses due to inflation. Further, the Family Pension will also be proportionately increased, which would, in turn, benefit all dependents of the retired government employees.
DA May Increase Further
DA is the other important factor likely to see a revision upward along with the increase. At this point in time, the consideration for DA changes every six months on the basis of inflation statistics. Keeping in tune with the latest trend, DA is pegged at 50% of the basic pay, and with the next pay commission, all may be refitted and recalibrated with respect to the new pay structure. This gives an extra edge to employees in coping with the surging price of living costs.
