8th Pay Commission latest news: Central employees are eagerly waiting for the 8th Pay Commission. It is expected to be implemented by 2026, but the big question is how much will the salary increase? What will be the fitment factor? And what changes will be made in the new allowances? If you are also a government employee, then this news is very special for you! The 8th Pay Commission can see a good jump in the salary of employees. Especially the employees from level-1 to level-6 are expected to benefit more.
When will the 8th Pay Commission be implemented?
The 8th Pay Commission (8CPC) is likely to be implemented from 2026. The government will consider its recommendations in 2025. Government employees and pensioners are eagerly waiting for it.
How much will the salary increase?
In the 7th Pay Commission, a salary hike of 14.27% was given, but in 8CPC, an increase of 18-24% is expected. The fitment factor will play a big role in this.
What will be the fitment factor?
In 7CPC, the fitment factor was 2.57, which made the minimum salary ₹ 18,000. In 8CPC, it can be 1.90, 2.08 or 2.86, which will increase the basic pay significantly. The fitment factor is more likely to be fixed at 1.90.
What will be the minimum salary?
If the fitment factor is fixed at 1.90, then the minimum basic salary of government employees can increase from ₹ 18,000 to ₹ 34,200. This will also increase the salary of mid-level and senior employees significantly.
What will be the change in allowances?
Dearness Allowance (DA), Transport Allowance (TA) and House Rent Allowance (HRA) can also see a big jump. It is estimated that DA will again start from 0% and will increase gradually.
How much will the pension increase?
Currently, the minimum pension is ₹9,000, which can increase from ₹15,000 to ₹20,000 after the implementation of 8CPC. The maximum pension can go above ₹1.25 lakh.
What other benefits will be available?
Basic pay will increase to deal with inflation. All allowances will increase. Pensioners will get better revised pension. Retirement gratuity and PF contribution will also improve.
Difference in salary of central and state employees?
Central employees always get salary according to Pay Matrix, while state governments can apply different rules for their employees. Some states may delay the implementation of 8CPC.
Who will benefit the most?
Employees from level 1 to level 6 will get the most benefit. Higher level officials will also get salary hike, but the fitment factor may be different for them.
What will be the effect of the 8th Pay Commission on the private sector?
Increase in government salary can also lead to changes in salary in the private sector, because companies can also increase salaries to retain talented people.
Recommendations may come by the end of 2025
The government has approved the formation of 8th CPC. The new pay commission will start its work from April. It is believed that its recommendations can come by the end of 2025 and work can move forward towards implementing it from 2026.
Dearness allowance will be zero
After the implementation of 8th Pay Commission, dearness allowance (DA) will start from 0% and it will be increased every 6 months.
Changes will come in gratuity and EPF
Gratuity and EPF contribution received by employees on retirement will also increase. This will strengthen their financial security.
Will government jobs be more attractive?
Absolutely! Government jobs will become more profitable due to increased salary, better allowances and strong retirement pension.
What will be the impact on the economy?
Increasing the salary of employees will bring more money in the market, which will increase the demand and strengthen the economy. However, the financial pressure on the government will also increase.
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