The much-awaited 8th Pay Commission for central government employees is likely to be announced in this budget almost. With the implementation of the 7th Pay Commission in 2016 employees are waiting for the next pay commission with an expectation to see a further hike in the salary and pension rates.
What is the Expected Time Frame of the 8th Pay Commission?
The 8th Pay Commission came into force in 2025 while the existing 7th Pay Commission is to run for 10 more years. The government witnesses the formation of a new Pay Commission after every 10 years and the 8th Pay Commission is likely to be released by the time of 2025 budget.
Raises in Expected Salary and Pensions
It is expected that something large will be introduced in relation to the 8th Pay Commission. The employees of government expect their minimum wages to increase to ₹34,000 and the minimum pension could even potentially be ₹17,000. Altogether, a new fitment factor could be loaded where salary and pension benefits could be hiked up.
Fitment Factor Explained
As the present position, the fitment factor of central employees is at 2.57 percent. Nevertheless, consumers are pressingly demanding its raise to 3.68% to fight inflation though. If the government increases the fitment factor up to 2.86%, then an employee with a basic pay of ₹20,000 may get the salary of ₹57,200.
Retired employees will be beneficiaries too The retirees will also enjoy equal rights from the services to be offered hence, receiving similar privileges from the services to be provided will also delight the retired employees.
The employees who have retired will also be happy with the 8th Pay Commission. Under the new Unified Pension Scheme (UPS), pensioners will be paid 50 percent of their last 12-month average basic wage rate. In case a former employee dies, the family will receive 60% of the pension. Also most pension are expected to go up for retired employees especially for those who served for 25 years they will be rewarded massively.
