8th Pay Commission: The Pay Commission convenes approximately every decade. During these meetings, significant adjustments to salaries are made, taking into account factors such as inflation, economic conditions, and the cost of living. Additionally, modifications to the allowances for pensioners and central government employees are also addressed.
Media reports suggest that the implementation of the 8th Pay Commission could lead to an increase in the salaries of central employees. It is estimated that around 5 million employees and 6.5 million pensioners would benefit from this salary enhancement. Currently, a mid-level employee earns approximately Rs 1 lakh annually, prior to tax deductions. The potential salary increase for central employees is contingent upon budget allocations.
As of now, there has been no official announcement regarding the 8th Pay Commission, although reports indicate that it may commence in April 2025, with its recommendations and decisions potentially taking effect in January 2026. For context, the government allocated Rs 1.02 lakh crore for the 7th Pay Commission, which was implemented in January 2016, but its impact was felt by government employees and pensioners starting in July 2016.
In line with the recommendations from the previous meeting, the government raised the basic salary from Rs 7,000 to Rs 18,000.
Projected Salary Increases:
– With an allocation of Rs 1.75 lakh crore, the monthly salary could reach Rs 1,14,600.
– If Rs 2 lakh crore is allocated, the monthly salary may rise to Rs 1,16,700.
– An allocation of Rs 2.25 lakh crore could result in a monthly salary of Rs 1,18,800.
