The government brings good news for the central employees and pensioners. Later, they will see a scale up of their wages and pensions. This update will cover about 48 lakh central employees and 68 lakh pensioners.
Salary and Pension Increase Updates
The several enhancements implemented due to the 7th CPC have helped employee and pensioner to receive more financial benefits in the recent years. Lately, the government has increased DA rate for central employee’s by 3%. Besides this, the Unified Pension Scheme (UPS) has also been implemented which give extra pensionary allowances to the retired workers.
According to UPS, retirees will be entitled to a pension equivalent to 50% of their average basic remuneration in the one year preceding the retirement age. All employees who completed confinement service for 10 years and above shall be entitled for pension of ₹10,000 per month.
Also, the next of kin of all other employees that die while still in service will receive sixty percent of the pension amount. It also protects that they will be paid gratuity one and only, for such a service and they will also be paid under inflation.
What’s Next with the 8th Pay Commission?
7th Pay Commission is going to complete ten years in by December 2025. The folklore of pay commission generally is that a new pay commission is established every ten years. Though the government has not come up with the calendar and public notice of implementing the 8th Pay Commission, media news abound suggesting that the 8th Pay Commission may be implemented from January 01,2026.
In case the 8th Pay Commission is implemented, employees may receive their salary packages improved through a new fitment factor. The fitment factor has at present is located at the 7th Pay Commission and it is a figure of 2.57 and it could move to 2.86. This adjustment may increase the minimum basic pay of certain salaries from ₹ 18000 to ₹ 51480 and minimum pension from ₹ 9000 to ₹ 25740.
Unified Pension Scheme Highlights
The Unified Pension Scheme is to launch on April 1, 2025, and gives multiple advantages over the current system, including, but not limited to, the possibility of achieving higher pensions, increasing pension amounts by inflation, and avoiding employer contributions from employees. Employees who are exiting an organisation have options of either the National Pension Scheme (NPS) or UPS. I
