Here are the key points about the 8th Pay Commission:
Latest Update
- The Union Minister Ashwini Vaishnaw has announced that the government has approved the formation of the 8th Central Pay Commission.
- This move is expected to revise the pay structure and benefits of lakhs of government employees and pensioners.
Key Points
- The 7th Pay Commission, which was implemented in 2016, will remain valid until 2026.
- The government has approved the formation of the 8th Pay Commission to ensure timely recommendations for implementation from 2026 onwards.
- The fitment factor, a multiplier used to revise salaries and pensions, is expected to be increased to 2.86 times under the new pay commission.
- This increase could lead to a significant rise in basic salaries, with a possible increase of 186% in the minimum salary.
- The minimum pension could also see a rise from ₹9,000 to ₹25,740.
- Dearness allowance (DA) and other government-provided perks will also be revised based on changes in the basic salary.
- The Unified Pension Scheme (UPS) is set to be implemented from April 1, 2025, which will calculate pensions based on the salary of the 12 months prior to retirement.
Expected Benefits
- A significant increase in salaries and pensions for government employees and pensioners.
- Revised pay structure and benefits to ensure that government employees’ salaries keep pace with inflation and rising living costs.
- Improved pensions for retirees under the Unified Pension Scheme (UPS).
Timeline
- The 8th Pay Commission is expected to be established by 2026, following the conclusion of the 7th Pay Commission’s recommendations.
- The Unified Pension Scheme (UPS) will be implemented from April 1, 2025.