8th Pay Commission Update: When will central government employees and pensioners receive the benefits of the 8th Pay Commission? A growing question remains. From street corners to intersections, everyone is abuzz with speculation about the 8th Pay Commission. It will benefit 6.9 million pensioners and over 5 million employees.
A committee formed by the government, headed by retired Justice Ranjana Desai, has begun its review. This committee will submit its review report to the government within 18 months, after which it will be implemented. It is expected that the central government will implement the recommendations of the 8th Pay Commission by mid-2027.
Once implemented, a significant salary increase is expected, which will prove to be good news. The basis for this salary increase can be understood in detail below.
How Much Could the Fitment Factor Increase?
According to experts on the 8th Pay Commission, the fitment factor is expected to be between 1.83 and 3.0. However, most estimates place it in the range of 2.15 to 2.57. It is estimated that upon implementation of the 8th Pay Commission, salaries of employees in pay levels 1 to 18 could increase by 20% to 35%.
The impact of the fitment factor can vary at different levels. If the government implements a uniform fitment factor, officers in higher positions, such as pay level 18, could see a significant increase in salary in rupee terms.
On the other hand, employees at lower levels (levels 1 to 5) are expected to receive greater benefits in percentage terms. It should be understood that if the fitment factor remains around 2.57, a significant gap between the minimum and maximum salaries of employees can be transparently increased.
When will the Commission submit its report to the government?
For information, the Commission is expected to submit its review report to the government by April-May 2027. After receiving the report, the government can implement it within a few days. The Finance Ministry and other departments of the government study the report, make some changes, and then receive Cabinet approval.
This process typically takes six months after the report is submitted. Therefore, in practical terms, the new salary structure is likely to be implemented in late 2027 or early 2028.
Da Increase Also Discussed
The central government may soon increase the DA by up to 2%. This increase will bring the total DA to 60%. A decision on the DA increase could be taken after Holi. Currently, central government employees receive only 58% DA benefits. The government increases DA twice every year.
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