New Delhi, January 16: The Union Government has approved the establishment of the 8th Pay Commission for central government employees, announced by Information and Broadcasting Minister Ashwini Vaishnaw. The move follows the rise of the dearness allowance (DA) above 50% of the basic pay, with employees currently receiving 53% DA effective from July 1, 2024.

The new 8th pay commission, set to revise salaries and pensions, will bring significant changes, though its exact recommendations are yet to be announced. 8th Pay Commission Gets PM Narendra Modi’s Approval, 7th Pay Commission To End in 2026.

8th Pay Commission: How Much Salary Hike Can Central Govt Employees Expect

Central government employees last saw a salary revision under the 7th Pay Commission, implemented from January 1, 2016. It increased the minimum basic pay from INR 7,000 to INR 18,000, with a fitment factor of 2.57 times. Experts suggest that the 8th Pay Commission may recommend a fitment factor in the range of 2.5 to 2.8, leading to substantial hikes. This could push the average salary increase for employees to between INR 40,000 and INR 45,000. LTC Scheme: Centre Issues Order Allowing Government Employees To Travel on Tejas, Vande Bharat, Humsafar Express.

The fitment factor, a multiplier used to revise salaries, plays a crucial role in determining pay hikes. The 7th Pay Commission applied a uniform fitment factor, ensuring consistency in salary revisions. Stakeholders have long demanded a single fitment factor applicable across all grades to address gaps in grade pay and pay band assessments.

With inflation and economic conditions in focus, the government aims to address employee expectations while balancing fiscal responsibility. Proposals for performance-based pay hikes are also under consideration, potentially introducing merit-driven salary adjustments.

As the dearness allowance is set to rise again in January 2025, the 8th Pay Commission’s recommendations are expected to provide much-needed financial relief to employees and pensioners, ensuring their salaries remain aligned with rising living costs and economic realities.

(The above story first appeared on LatestLY on Jan 16, 2025 04:59 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).