The central government has indicated it is initiating the process of forming the 8th Pay Commission. If approved, it will directly impact the financial situation of approximately 5 million government employees and 6.5 million pensioners. Sources indicate that the commission could be announced by 2026, although some reports suggest it may be postponed until 2027.
Recently, a crucial meeting was held between the government and the employee representative organization, the Government Employees National Confederation (GENC), chaired by Union Minister Jitendra Singh. The minister stated that discussions are ongoing with state governments as well, and an official announcement is expected soon. Given the festive season, this move could prove to be unprecedented news for employees and pensioners.
A major increase in the minimum basic pay is possible.
The most significant aspect of the potential recommendations of the 8th Pay Commission is the increase in the minimum basic pay. Currently, it is ₹18,000, and there is a strong possibility of it being increased to ₹26,000 under the new structure. This change will provide significant relief to employees amid inflation and rising living costs.
Employees believe this increase is long overdue, as several years have passed since the implementation of the previous Pay Commission’s recommendations. This significant increase in the minimum wage will strengthen the financial security of government employees.
Dearness Allowance (DA) Revision Also Expected
Dearness Allowance (DA) is also expected to be revised with the 8th Pay Commission. Currently, employees and pensioners receive 55% DA. Recently, a 2% increase was made in line with the inflation rate. Experts estimate that the next DA increase could be 3% for the period June-December 2025. This revised DA is likely to be announced in October or November, providing significant financial relief to employees and pensioners during the festive season.
Major relief package for employees and pensioners
If both the 8th Pay Commission and DA reforms are implemented, they will provide significant financial relief to millions of families dependent on government salaries. These measures will act as a safety net for employees and pensioners amid rising inflation.
Experts believe that this dual relief—salary hike and DA increase—will not only provide short-term financial relief but also contribute to the long-term economic stability of employees. However, the actual date of this entire package will depend on when the commission is formed and the government’s financial situation.