8th Pay Commission Latest News: The Modi government is likely to announce the 8th Pay Commission soon. After the announcement, government employees will witness a significant rise in salaries and pensions. To recall, the 7th Pay Commission recommendations were implemented in 2016 and now expectations are high for another substantial revision amongst the employees.
Here are some of the important 5 points:
- According to the reports, the 8th Pay Commission is likely to be constituted in 2025, with its recommendations expected to take effect from 2026.
- Considering the trends from previous pay commissions, the employees can expect a substantial salary increase. Estimates indicate a potential hike of up to 34% for Level 1 employees and up to 100% for Level 18 employees.
- The Unified Pension Scheme (UPS) is also expected to benefit from the 8th Pay Commission, with potential increases in pension amounts.
- The 8th Pay Commission is expected to introduce a revised pay matrix. This will result into the higher salaries for government employees.
- The fitment factor, which determines the salary increase, is likely to be higher than the previous pay commission.
Calculation of Salary and Pension According to 8th Pay Commissions
- The 8th Pay Commission could raise the minimum salary for Level 1 employees from ₹18,000 to Rs 34,560, with a fitment factor of 1.92.
- For Level 18 employees, the maximum salary could increase from ₹2.5 lakh to ₹4.8 lakh.
- Pension calculations under the Unified Pension Scheme (UPS) would also change.
- Assuming a 50% pension formula and a 20% increase in Dearness Allowance (DA) by 2029, a Level 1 employee could receive a pension of approximately Rs 20,736, while a Level 18 employee might get up to ₹2,88,000.
Fitment Factor
The fitment factor is a crucial factor in determining salary increases under the 8th Pay Commission. A higher fitment factor leads to larger salary increments.