New Delhi: Ever since the central government announced that Prime Minister Narendra Modi has approved the establishment of the 8th Central Pay Commission, the central government employees and retirees are pondering over how much average salary hike can they expect going by the past pay commission recommendations.
On January 16, 2025, Union Minister Ashwini Vaishnaw revealed that PM Modi has approved the setting up of the 8th Pay Commission for the central government employees. At this juncture, it is not possible to give a correct answer to what will be the pay hike as it will be known after the Pay Commission submits its report to the government and the latter takes a final decision and makes an official announcement.
“For your awareness, our Prime Minister has approved the establishment of the 8th Central Pay Commission for all central government employees,” the minister had said.
The central government employees and retired personnel are also concerned about the Dearness Allowance (DA). It may be noted that whenever the recommendations of the new pay commission are implemented, the DA is made zero. When the first salary is credited to the beneficiary as per the new pay commission, DA is not included in it. Later, the government takes into consideration factors like inflation, it announces the DA accordingly.
The 7th Pay Commission recommendations were implemented from January 1, 2016 onwards. The central government employees and pensioners are getting 53 per cent of their basic pay as dearness allowance/relief with effect from July 1, 2024. The employees and pensioners are due for a hike in dearness allowance/relief from January 2025.
The government initiated the 7th Central Pay Commission in 2016 and is set to complete its term in 2026. The pay commission plays a very important role in determining salary structures, allowances for government employees.
The 7th Pay Commission had recommended the minimum pay to be increased from 7,000 per month to 18,000 per month with a fitment factor of 2.57 times of basic pay. Many experts believe that the new Pay Commission might keep the fitment factor between 2.5- 2.8 times. In this scenario, the employees with salaries in the range of Rs 40,000 and Rs 45,000 would get a good hike.
Some experts and central government employees are of the opinion that the Commission could consider fitment factor of 2.86 and if this happens there would be an exponential jump in the basic salary.
on January 16, 2025, Prime Minister Narendra Modi has approved the establishment of the 8th Central Pay Commission to revise salaries and benefits for central government employees. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
