Central employees and pensioners are at present getting the advantage of allowances and salary according to the 7th Pay Commission. The recent announcement of government increasing the dearness allowance availed by employees and pensioners up to 3 percent. To note, the percentage increased from 50 to 53. It will be effective from July 1, 2024. After this announcement from the central government, the state governments are also declaring their dearness increase in dearness allowance (DA) and DR for their employees and pensioners.
8th Pay Commission
Now, the central government employees and pensioners are actually awaiting the 8th Pay Commission. Every 10 years or so, the new pay commission is constituted by the central government. The 7th pay commission was implemented exactly 10 years ago by the government. The 7th Central Pay Commission (CPC) was constituted by the government on 28 February 2014 and was put into effect from the year 2016.
What big announcement will be released in the Budget 2025?
So, government employees are expecting a well-documented decision from the government on the Eighth Pay Commission. But, as of now, there has been no official confirmation made by the government regarding the same. Speculations say that the announcement regarding the 8th Pay Commission will possibly be made in February next year when the Union Budget 2025 will get presented. Indubitably, jumping from one pay commission to another shall create a huge escalation in the salaries of government employees and pensions of pensioners relieving them amidst the high inflation rate.
Because employees in India have grumbled that salaries have remained unchanged, they were expecting new initiatives by the center through the new Pay Commissions to better the salaries with new promises.
Salary and Pension of central employees
Contrary to the previous Pay Commission, which recommended a 2.57 equalization factor, speculations about the New Pay Commission are saying the salary and pension of central employees could be revised on a 3.68 enhancement factor or fitment factor hike. It is said that it would lead to a big increase in salary for the employees.
As per some reports, in light of 1.92 fitment factor, the pay matrix in 8th Pay Commission can be formulated. This will prove financially beneficial for both employees and pensioners. Still, there is no official communication from the government side on this.
However, if recommendations made by the 8th Pay Commission take effect, the minimum salary of central employees likely will be increased from Rs. 18,000 to approximately Rs. 34,560, or around a 92 percent increase. Correspondingly, the minimum pension of retirees may go up to Rs 17,280.
As per reports, the matter will be taken into discussion in the coming meeting of Joint Consultative Machinery (JCM), which will take place somewhere in November. JCM is an important platform in which there is dialogue between government and employees and helps in dispute resolution.
The meeting will be presided over by the Union Cabinet Secretary and will also include representatives of recognized employee unions and service associations. It is expected that after this meeting some concrete decision can be taken regarding the 8th Pay Commission.
