The Central government has announced plans to set up the 8th Pay Commission, which will affect the salaries and pensions of more than 100 lakh people, including government employees and pensioners. Focus keyphrase 8th Pay Commission salary hike is one of the milestones; however, experts predict that changes will be seen at almost all employee levels.
Former AG Office Brotherhood president Hari Shankar Tiwari stated that staff at levels 6 to 12 can expect a basic pay rise of about 20%. It will also be proportionately translated into the House Rent Allowance and Transport Allowances. For the workers in levels 1 to 5, the increment will be much more around 25% with corresponding HRA and transport adjustments.
The 8th Pay Commission Hike from Central Government Will Benefit Salaried Class in a Number of Ways
According to reports, this move will benefit nearly 50 lakh central government employees, including defense personnel. Additionally, an estimated 65 lakh pensioners are expected to receive benefits. The 8th Pay Commission will also suggest updates in dearness allowance (DA) and dearness relief (DR) to counter inflationary pressures on both salaries and pensions.
The last pay commission was introduced in January 2016. It hiked the minimum basic pay from ₹7,000 to ₹18,000 with a fitment factor of 2.57. According to experts, the new commission is likely to raise the minimum basic pay by a whopping 186%, which would increase it to ₹51,480 per month. “This drastic change might alter the pay scales of the government employees,” said Rohitaashv Sinha, partner at King Stubb & Kasiva law firm.
The commission is also going to suggest amendments in pension schemes and retirement benefits such as EPF and gratuity. In addition, there are suggestions that the increments might be performance-based, which can be a sign of change in the pattern for central employees in terms of increments.
The detailed proposals of the 8th Pay Commission await the government further, which might change the fate of the employees and pensioners.
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