New Delhi, September 3: Amid discussions around the 8th Pay Commission, government employees are keenly anticipating potential revisions to their salaries and pensions. In response to longstanding demands from central government employees dissatisfied with the New Pension System (NPS), the Indian government has launched the Unified Pension Scheme (UPS), which merges key aspects of both the NPS and the Old Pension Scheme (OPS).

The new scheme offers a fixed, guaranteed pension amount, calculated as 50% of the average monthly salary from the last 12 months before retirement, for employees with 25 years or more of service. Additionally, pensions will be adjusted for inflation, and a minimum pension of INR 10,000 is assured for those with at least 10 years of service. 7th Pay Commission: Good News for Central Govt Employees As 4% DA Hike Likely on Cards, Check Details Here.

8th Pay Commission to Potentially Double Salaries

The 8th Pay Commission, anticipated to be implemented in 2026, is expected to introduce significant salary increases across all pay levels. Reports suggest that the pay matrix could be revised using a fitment factor of 1.92, which would substantially raise the current salary structure. 7th Pay Commission: DA Likely to Be Hiked by 3% For Central Govt Employees and Pensioners, Know How Much Salary Will Increase.

For Level 1 employees, the minimum salary could rise from INR 18,000 under the 8th Pay Commission to INR 34,560, while the maximum salary for Level 18 employees, currently INR 2.5 lakh, could be increased to INR 4.8 lakh.

Pension Calculations Under the UPS

With the implementation of the 8th Pay Commission, pensions under the UPS will be based on the revised salaries. For Level 1 employees, whose salaries may rise to INR 34,560, the pension could be set at INR 20,736, accounting for a 20% increase in Dearness Allowance (DA) by 2029.

For Level 18 employees, with a projected maximum salary of INR 4.8 lakh, the pension could reach INR 2,88,000, based on the same 50% calculation of the last drawn salary plus DA.

(The above story first appeared on LatestLY on Sep 03, 2024 07:46 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).