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Business / Sun, 09 Jun 2024 The Financial Express

8th Pay Commission Salary Structure: How much pay hike central govt employees can expect!

8th Pay Commission Salary Structure: Over a crore government employees and pensioners are eagerly awaiting the formation of the 8th Pay Commission, which will submit its recommendations to the government regarding an increase in the salary of government staff. The 8th Pay Commission is likely to be implemented from January 2026. In previous instances, the central government has implemented the recommendations of a new pay commission every 10 years. Regarding the formation and implementation of the 8th Pay Commission, the Indian government has yet to make any formal announcements. This 8th Pay Commission will also result in a multitude of other benefits, including revised pay scales and retirement benefits.

8th Pay Commission Salary Structure: Over a crore government employees and pensioners are eagerly awaiting the formation of the 8th Pay Commission, which will submit its recommendations to the government regarding an increase in the salary of government staff.

When will the 8th Pay Commission be implemented?

The 8th Pay Commission is likely to be implemented from January 2026. In previous instances, the central government has implemented the recommendations of a new pay commission every 10 years. The 7th Pay Commission came into effect in January 2016. The first Pay Commission in India was set up in January 1946.

Regarding the formation and implementation of the 8th Pay Commission, the Indian government has yet to make any formal announcements. Last year, in December, the government stated that there were no plans by then to establish the 8th Central Pay Commission. Now that the national election is over, there is a strong possibility that the government may take a decisive step towards forming the commission. Once the pay commission is formed, it usually takes 12-18 months to submit its recommendations.

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How much increase in government employees’ salary is expected?

Once implemented, the 8th Pay Commission is likely to benefit approximately 49 lakh government employees and 68 lakh pensioners. It is expected that their remuneration will be revised with an increase in the fitment factor under the 8th Pay Commission. As reports suggest, the fitment factor is likely to be set at 3.68 times. With the minimum basic salary of government employees at Rs 18,000, the increase in the fitment factor will result in their basic pay rising by Rs 8,000 to Rs 26,000.

The fitment factor is a key formula that helps in arriving at the salaries of employees and Pay Matrix under the 8th Pay Commission. Its primary role will be adjusting the current 7th CPC Pay in alignment with the proposed 8th CPC Pay Scale.

The 7th Pay Commission introduced a fitment factor of 2.57 times. This resulted in an average salary increase of approximately 14.29% for employees. Consequently, the minimum pay scale was set at Rs 18,000.

Once implemented, the 8th Pay Commission is expected to address salary disparities among different employee groups, alleviating the effects of inflation.

This 8th Pay Commission will also result in a multitude of other benefits, including revised pay scales and retirement benefits. The benefit and impact of the 8th Pay Commission go beyond government employees, covering military personnel and pensioners alike.

The 8th Pay Commission’s mandate is much beyond monetary considerations. Its purview also aims to cover salary disparities prevalent among different employee groups while cushioning the effects of inflation. As expectations soar, the 8th Pay Commission will be a big milestone in the quest for equitable remuneration and financial security for those in public service and retirement.

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