8th Pay Commission: The Government of India has not yet made any major announcement regarding the Eighth Pay Commission. Nor has any final decision been taken on its Terms of Reference (TOR) and members. Since the announcement of the 8th Pay Commission in January, many speculations have been made about the increase in salary and pension of Central Government Employees and pensioners. However, now the focus is not only on salary but also on allowances, in which major changes are expected. This news is very important for crores of employees and pensioners.
There will be a huge increase in the medical allowance for pensioners
In the 34th SCOVA (Standing Committee of Voluntary Agencies) meeting held at Vigyan Bhavan, New Delhi on 11 March 2025, a proposal has been passed to increase the Fixed Medical Allowance (FMA) of pensioners from ₹ 1,000 to ₹ 3,000. SCOVA is a forum where the problems of pensioners and suggestions related to their welfare are discussed.
The pensioners had described the existing amount of ₹ 1,000 as very low compared to the rising inflation and increase in medical expenses, and demanded an increase in it. This increased allowance can be implemented from 1 January 2026, as it has been recommended to be included in the TOR of the 8th Pay Commission. This will prove to be a big relief for the pensioners.
Work on the new structure of HRA and other allowances continue
It was made clear in the SCOVA meeting that, along with the salary, the main allowances like House Rent Allowance (HRA), Travel Allowance (TA), Dearness Allowance (DA), and Medical Allowance will also be reviewed in the 8th Pay Commission. According to reports, the rate of HRA is likely to be kept higher in Metro Cities, so that the employees living in these cities can get financial benefits.
The travel allowance can be calculated differently for employees posted in rural and semi-urban areas, so that their special needs can be met. Apart from this, preparations are also underway to abolish some old and useless allowances, so that the entire system can be made more transparent and practical.
Discussion on Fitment Factor and DA Merger too
In the previous Pay Commission, the Fitment Factor was 2.57, due to which the minimum salary was fixed at ₹ 18,000. Now the news is that it is being considered to increase it from 2.8 to 3.0. If this happens, the minimum salary can go up to ₹ 26,000 to ₹ 27,000, and the pension can also be around ₹ 25,000. However, there is no official confirmation from the government on this. There is also a discussion on merging DA into Basic Pay. This will not affect the total salary much, but the rate of DA increase may be reduced in the future. This can be a significant change for the employees.
When will the 8th Pay Commission recommendations be implemented
The 8th Pay Commission recommendations may take some time to be implemented, as the formal formation of the commission and the decision on TOR are yet to be taken. Usually, it takes 18 to 24 months from the formation of the commission to the implementation of the recommendations.
In such a situation, the date of 1 January 2026 may be extended. Now all eyes are on when the government makes a new announcement regarding the 8th Pay Commission. This will be a turning point for the future of central employees and pensioners.
