Budget 2025: 8th Pay Commission Approved; Details About Expected Salary Hike And Key FAQs Inside

The government is expected to soon appoint a chairman and two people to compose the 8th Pay Commission. Check the expected salary hike and key FAQs here.
8th pay commission

As Prime Minister Narendra Modi announced the 8th pay commission, all are eagerly waiting for the next salary and pension revision for around 1.2 crore central government employees and pensioners.

Sharing a post on X, PM Modi wrote, “We are all proud of the efforts of all government employees who work to build a Viksit Bharat. The Cabinet's decision on the 8th Pay Commission will improve quality of life and give a boost to consumption.”

The centre will soon appoint the chairman and two people for the composition of the 8th Pay Commission. Once it is officially formed, the stakeholders will propose revised salaries and pensions for the central government employees to the government.

Why Are Pay Commissions Important?

commission

Pay Commissions are made by the government to address the pay and pension-related issues faced by government employees. In addition, it also addresses the rising cost of living. They also result in a broader impact on the economy and consumer sentiment.

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What To Expect From the 8th Pay Commission?

commissions

The 8th Pay Commission is expected to follow a similar approach as before, using a formula that considers current living costs and market data to determine salaries. Reports suggest that the government might choose a "fitment factor" between 1.92 and 2.86 to calculate salary hikes. If the highest fitment factor of 2.86 is used, government employees can expect a significant increase in their minimum basic salary, from Rs 18,000 to Rs 51,480. Similarly, pensions would also see a substantial hike, rising from Rs 9,000 to Rs 25,740. The salary and pension hikes are calculated by simply multiplying the fitment factor by the previous minimum salary or pension amount.

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These possible fitment factors are just rumours for now, and what really matters is what the 8th Pay Commission actually suggests and what the government finally decides. The chosen fitment factor will be used to calculate the new salaries and pensions for government employees.

Keep reading Herzindagi for more such stories.

Credits: Freepik

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