The Central Government of India has recently taken a big step for the betterment of the employees. Union Minister Ashwini Vaishnav announced the formation of the 8th Pay Commission. Under the new commision, the salaries, pensions, and allowances of central government employees and pensioners will be revised. This announcement comes just days before Budget 2025.
DA Hike by 3 percent
Recently, the Union Cabinet on Wednesday approved a 3 percent hike in Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners. After this hike, DA and DR are now 58 percent. The central government increases DA and DR twice a year, the first hike will be effective from January 1 and the other from July 1.
The commission will make recommendations on changes in the salaries, dearness allowances (DA) and pensions of central government employees and retirees, including inflation-adjusted allowances. The government has not yet announced an official percentage of the pay increase. However, reports suggest that the minimum basic salary could increase from ₹18,000 to ₹51,480, depending on the fitment factor. This is a multiplier used to calculate salaries and pensions, taking into account factors such as inflation, the government’s financial situation, and the needs of employees.
Who will be the benefits?
– About 50 lakh central government employees (including defence personnel).
– Around 65 lakh pensioners (including defence retirees).
When will the 8th Pay Commission be implemented?
According to reports, this commission will be formed by 2026 and its recommendations are expected to be implemented from January 1, 2026. This commission, formed every 10 years, reviews the salaries, allowances, pensions, and bonuses of government employees. It makes recommendations based on inflation, economic conditions, and the state of the public treasury. Seven pay commissions have been formed since 1946. The recommendations of the 7th Pay Commission (implemented in 2016) are currently underway. This new move by the Modi government will extend the 10-year cycle. This news brings significant relief to government employees and pensioners. Now it remains to be seen how the commission’s recommendations will impact the common man’s pocketbook.