8th Pay Commission: The central government has recently established the 8th Pay Commission to assess and recast the salaries and pensions of central employees and pensioners. It is again considered crucial towards enhancing the standards of living of approximately 5 million employees and about 6.5 million pensioners.
Possible Implementation Date Of 8th Pay Commission
In January 2025, the Union Cabinet has announced the establishment of the 8th Pay Commission with the implementation date set from January 1, 2026. However, there is a speculation that it might be postponed since terms of reference regarding the commission have not been announced yet by the government. Notably, though, the Minister for Railways and Communications and IT has savored the enormity of time for formulating recommendations for its establishment and implementation, as announced a few years ago.
Fitment Factor And Possible Salary Hike
As per indications, it is very likely that the 8th Pay Commission would hike the fitment factor to 2.86. For example, if that happens, the minimum basic salary of an employee at Level 1 may now increase, from ₹18,000, to ₹51,480. This increase would keep into consideration prevailing economic conditions of the employees, with due regard for inflation.
Use Of Akroyd Formula
In the 8th Pay Commission, salary fixation under the Akroyd formula may be utilized. This specifies the amount of minimum salary paid according to the health requirements of the employees. This formula was also applied earlier in the 7th Pay Commission, which raised the basic minimum salary from ₹7,000 to ₹18,000.
Impact On State Governments
The recommendations made by the Central Pay Commission also carry a connectedness with state governments as they consider recommendations made by the Central Commission to remodel the salaries of their employees. It is highly likely that this change would increase the salaries and pensions of state government employees.
The formation of the 8th Pay Commission is an important initiative aimed at government employees and pensioners towards improving their standard of living. Employee patience is necessary, however, considering the possibility of delay in implementation. Subsequent government information in this regard is awaited to clarify the salary hike and pension revision.
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