The Union Budget 2025 is ahead in mean time, the Union Cabinet has approved the 8th Pay Commission on Thursday. The government has taken the decision as it will boost the consumption and improve the quality of life.
Now the question rises that what is 8th Pay commission and how it will boost the quality of employees’ life? Lets see.
What is 8th Pay Commission?
Pay Commission is a panel of set by Government of India to review and recommended changes in the salary structure of central government employees and pensioners. It will also see the other benefits of the employees. The primary goal of the commission is to ensure that the salaries and the benefits of the government employees remain fair and sufficient.
The 8th Pay Commission will suggest changes to the salary and pension structure, leading to an increase in pay and allowances for the beneficiaries.
Since 1947, India government has constituted seven Pay Commission. The last commission has constituted in 2014 and has implemented in the year of 2016 on January 1. On 7th Pay Commission the expenditure has increases of Rs 1 lakh crore for fiscal 2016-17.
So, it might be said that on 8th Pay Commission the salary of central government Employees and pensioners will increase.
How the 8th pay commission might benefit government employees?
According to News Agency PTI report, there are over 49 lakh central government employees and nearly 65 lakh pensionaries.
The 7th Pay Commission term is going to end of December 2025 said Ashwini Vaishnaw, starting the process now allows enough time to receive and review recommendations before its term ends. He also mentioned that setting up the new Pay Commission in 2025 will ensure its recommendations are ready well before the 7th Pay Commission’s term concludes.
Implementing the pay commission’s recommendations boosts consumption and economic growth, improving the quality of life for government employees. Typically, the central government sets up a pay commission every 10 years to revise employee salaries.
Narendra Modi stated, “We are all proud of the efforts of all Government employees, who work to build a Viksit Bharat. The Cabinet’s decision on the 8th Pay Commission will improve quality of life and give a boost to consumption.”
Expected changes in the new Pay Commission
Krishnendu Chatterjee, Vice President at TeamLease, stated through Economic Times (ET), “The average pension hike should be in line with the hike in salaries. It is expected to be in a fitment factor of 2.5-2.8, thus increasing the pension from the current Rs 9,000 to anywhere between Rs 22,500 and Rs 25,200.”
Nihal Bhardwaj, Senior Associate at SKV Law Offices, said, “Pensions under the 8th Pay Commission are likely to increase in line with the salary revisions, with an average hike of 25-30% expected. Past commissions, such as the 6th and 7th, provided pension increases matching salary hikes, with the latter implementing a fitment factor of 2.57, raising pensions by 23-25%.”
7th Pay Commission Salary Hike
Under the 7th Pay Commission, the fitment factor set at 2.57. This means the basic pay of central government employees and pensioners was multiplied by 2.57.
When the 8th PayCommission will be implement?
The minister Ashwini Vaishnaw announced that the chairman and two members of the 8th Pay Commission will appointed soon. Consultations with central and state governments will also take place. The commission must submit its report by 2026 with proposed salary and pension revisions. After reviewing the recommendations, the government will decide on the new structure, expected to be implemented by the end of 2026.
