New Delhi: A major question on everyone’s mind is when the 8th Pay Commission will be implemented for central government employees and pensioners, and how much of a salary hike it will bring. The committee constituted by the central government for the 8th Pay Commission is required to submit its report by June 2027.
This means a period of 18 months has been allocated for this task. Subsequently, the central government will implement the recommendations made by the committee. This could lead to a substantial increase in salaries. Approximately 1.25 crore families stand to benefit from this hike. You can find a detailed breakdown of the potential salary increase for central government employees later in this report.
Will the 8th Pay Commission prove to be the most expensive one yet?
Some reports claim that the 8th Pay Commission could prove to be the costliest pay revision in history. This is attributed to the significant rise in the number of employees and pensioners, as well as the likelihood of approval for major changes to allowances and the ‘fitment factor.’
Consequently, the government exchequer is expected to face an unprecedented financial burden. Over 50 lakh central government employees and 69 lakh pensioners will benefit from this. The minimum salary is also expected to see a manifold increase. However, these are currently just projections; it would be premature to make any official statements.
What will the salary of central government employees be?
Central government employees and pensioners could see a significant hike in their pay. Under the 7th Pay Commission, the minimum basic salary is ₹18,000. Various employee unions are demanding that the fitment factor be raised to between 1.92 and 3.83 times the current level.
Organisations like the Bharatiya Pratiraksha Mazdoor Sangh have proposed raising the minimum basic salary to ₹72,000 per month. If this proposal gets the green light, the minimum basic salary would increase fourfold an overall rise of ₹54,000.
Proposal to Increase Employee Allowances
Meanwhile, organisations such as the All India NPS Employees Federation have proposed raising the House Rent Allowance (HRA) currently at 30%, 20%, and 10% to 36%, 24%, and 12%, respectively, in view of the rising cost of living in major cities.
Since all allowances are determined based on the basic salary, an increase in the basic salary will automatically lead to higher expenditure on allowances. Recent reports indicate that the total expenditure on salaries and pensions under the 8th Pay Commission could exceed ₹4 lakh crore.
