The central government has released a crucial update regarding the 8th Pay Commission (8th CPC), which will determine the salary and pension hike for government employees and retirees. The formation of the commission has been approved, and the wait for its implementation has begun. Here’s a detailed breakdown of what to expect.
8th Pay Commission to Be Constituted Soon
According to a report by The Times of India, the 8th Pay Commission is expected to be set up in April 2025. Finance Ministry’s Expenditure Secretary, Manoj Goel, confirmed in an interview that the process of forming the commission is in progress.
Currently, the draft proposal has been sent to key ministries, including the Ministry of Defense, Ministry of Home Affairs, and Department of Personnel and Training, for their feedback. Once their inputs are received, the Terms of Reference (TOR) will be finalized, and cabinet approval will be sought again.
Expected Salary and Pension Hike Under 8th CPC
The 8th Pay Commission is expected to bring a significant salary and pension increase for central government employees and pensioners. While the exact figures have not been officially announced, reports suggest that the fitment factor will play a crucial role in determining salary increments.
Impact on Salaries
- Under the 7th Pay Commission, the minimum salary was increased from ₹7,000 to ₹18,000.
- For the 8th Pay Commission, employees are demanding a fitment factor of 2.86, which could increase the minimum salary to ₹51,480.
Impact on Pensions
- The minimum pension under the 7th Pay Commission was ₹9,000.
- Under the 8th Pay Commission, it could rise to ₹25,740, ensuring better financial security for retirees.
When Will the Hike Be Implemented?
While the commission is likely to be formed in April 2025, it will take some time to submit its recommendations. The government will then review the report and decide on implementation.
As per current estimates, there will not be any financial impact in the next fiscal year (2025-26). However, expenditure related to the salary and pension hike is expected to begin from April 2026.
How Often Is the Pay Commission Formed?
The Central Pay Commission is usually set up every 10 years to review salary structures, economic conditions, and inflation rates. The 7th Pay Commission was formed in 2016 and will be in effect until 2026. With its term coming to an end, the 8th Pay Commission has been approved to ensure a smooth transition.
Key Takeaways
- The 8th Pay Commission is expected to be constituted by April 2025.
- The fitment factor may increase from 2.57 to 2.86, leading to a 25-30% salary hike.
- The minimum salary could rise to ₹51,480, while the minimum pension may increase to ₹25,740.
- The salary hike will likely be implemented in the financial year 2026-27.
Final Thoughts
The approval of the 8th Pay Commission is a crucial step in improving the financial well-being of government employees and pensioners. While the exact salary and pension figures will be finalized after government reviews, employees can expect a significant pay raise once the recommendations are implemented.