The second hope among one crore Central Government employees and pensioners was augmented by speculation of the 8th Pay Commission being set up by the central government within 2-3 weeks. This hope is being sustained by the demand for salary revision and adjustment due to inflation and the rise in cost of living.
Government sources state that preparations are being undertaken to finalize the structure and terms of reference for the 8th Pay Commission. Once declared, the Commission will make recommendations based on a review of the current pay structure and allowances and of the pension system for central government employees, which will probably be effective from 2026.
Importance Of The 8th Pay Commission
The 7th Pay Commission, implemented in 2016, had a substantial revision regarding the pay scales and allowances of government employees. Since then, the pressure on the government has been mounting due to inflation and changed economic dynamics to do work for the 8th Pay Commission.
If history were to repeat itself, a new pay commission would raise the basic pay considerably and alter many allowances: Dearness Allowance (DA), House Rent Allowance (HRA), and Travel Allowance (TA), among others. It is speculated that the fitment factor measuring revised salary could be upgraded from the current factor of 2.57 times to about 3.68. Such an increase will raise the minimum basic pay from ₹ 18,000 to ₹ 26,000.
Timeline And Implementation
It could be a few weeks before the panel is expected to be set, but recommendations may take a while. Traditionally, the Pay Commission takes 12 to 18 months for scrutiny and submission of a detailed report to the Government. This will put the new pay structure into effect by January 2026, an opportune time, just ahead of the General Elections, and could be a politically-important act.
Effects On Pensioners And The Economy
The 8th Pay Commission is going to be beneficial for pensioners since renewed payout from revised structures normally counts senior pensioners under the “one rank, one pension” scheme. Higher salary and pensions should act as a propellant for consumer spending and the economy.
Conclusion
To conclude, the announcement of the formation of the 8th Pay Commission in the coming weeks is a big leap toward financial healing for central government employees and pensioners. There are high expectations for an ardently awaited salary revision in the country while it awaits an official announcement.
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