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Understand the 8th Pay Commission and its impact on salary revisions for government employees. Get all the key details and updates here!
On January 16, 2025, the Union Cabinet approved the 8th Pay Commission to revise central government employees’ salaries. The formation of the commission promises to hike public sector workers’ income.
What is the 8th Pay Commission?
The 8th Pay Commission is formed to revise the salaries, pensions, and allowances of central government employees and retirees. The commission will increase salaries and adjust the dearness allowances of government employees against inflation.
Salary Hike
Although there is news about salary hikes under the 8th Pay Commission, there’s no defined percentage or amount announced by the cabinet. The salaries of the employees is said to increase according to the fitment factor.
What is the Fitment Factor?
The fitment factor will dictate how the salaries, pensions, and allowances will be adjusted under the 8th Pay Commission. It is a method to calculate the salaries and pensions of government officials.
The fitment factor accounts for various factors such as inflation, government budget, employee requirements, and more.
Who will benefit from the 8th Pay Commission?
As per the Union Cabinet, around 50 lakh central government employees, including defence personnel, will be the beneficiaries of the 8th Pay Commission.
After the revision, nearly 65 lakh retired employees will also benefit from the pay commission.
When will the 8th Pay Commission be Enforced?
According to Union Minister Ashwini Vaishnaw, the 8th Pay Commission will likely come into force by 2026.
When was the Previous Pay Commission Constituted?
The Pay Commission is constituted once every ten years. So far, the government has established seven pay commissions since 1946.
Currently, the recommendations of the 7th Pay Commission are in action which was led by the former late Prime Minister Dr. Manmohan Singh. The 7th Pay Commission came into force on January 1, 2016.
What is the Role of the 8th Pay Commission?
The central government constitutes the pay commission to review and revise the salary structure of government employees.
The commission takes several factors into consideration such as inflation, the economic state of the country, and other relevant factors while revising the pay structure.
It also considers other factors such as perks, allowances, bonuses, etc. of government employees for revision.
