8th Pay Commission Update: Central employees and pensioners are in for a treat. The Modi government is now going to constitute the 8th Pay Commission soon. The 8th Pay Commission was approved in January 2025 and can be quickly implemented. In such a situation, it is expected that the 8th Pay Commission may be implemented late, which would be a significant shock.
Earlier, it was expected that the new Pay Commission would be implemented by January 1, 2026, but it now seems unlikely to occur. On the other hand, as soon as the 8th Pay Commission is implemented, a significant salary increase and a substantial gift will be expected. We cannot determine the exact amount of the salary increase. However, no official announcement has been made yet regarding the implementation date.
How much can the salary increase?
When the Government of India implements the new Pay Commission, the most critical factor is the fitment factor. The fitment factor plays a crucial role in determining the increase in basic salary. While implementing the 7th Pay Commission, a significant increase was made in wages. It is expected that if the 8th Pay Commission is implemented, the fitment factor will be 1.92.
This means that the new pay base will be determined by multiplying the employee’s existing basic salary by 1.92. You can understand from the example that if your basic salary is Rs 30,000, then the new salary will increase significantly. The new wage will be 30,000 × 1.92 = $ 57,600. In such a situation, the calculation of HRA will also be done on the latest basis. As a result, the amount of HRA will also increase significantly.
How much DA are the employees getting?
Currently, central employees are receiving a 55 per cent Dearness Allowance (DA) benefit. Earlier, employees received a 53 per cent DA, which increased by 2 per cent—the increased DA rate percentage will take effect on January 1, 2025.
The government increases the DA twice a year. Its rates are considered applicable from January to July. Thousands of employees and pensioners benefit from it.