The 8th Pay Commission has been set in motion by the central government and will mark a major change in the entire salary structure of the millions of government employees and pensioners. The commission will be working on new pay standards which will come into effect in 2026, replacing the recommendations of the 7th Pay Commission. The 7th Pay Commission is now in force since January 2016 and would last till 31 March 2026.
Major Points Of The 8th Pay Commission
As per sources, the new Pay Commission is expected to make significant changes to the existing pay structure. It has a probability of increasing its basic pay by 3 to 3.5 times. An initial budget of ₹ 20,000 crore has been already provided for any costs incurred by the Finance Ministry. Experts predict that the minimum pay may range from ₹ 26,000 to ₹ 80,000, while for the maximum limit it may range from ₹ 2.5 lakh to ₹ 7.5 lakh.
Changes In The System Of DA
Another great news linking the 8th Pay Commission is that the Dearness Allowance (DA) system might be subjected to a big change. It is possible that DA will be merged with the base salary, and there will be a new system of ‘Periodic Revision’ for implementation. This will bring an annual adjustment in the hands of the employees rather than giving dearness relief every three months, which really does complicate the staff salary muy tiempo.
Expected Relief For Pensioners
There is also good news for pensioners. The pension computation formula is also likely to be changed under the 8th Pay Commission. Presently the pension is computed at 50% of the last salary which may be raised to 60-65%. It is also expected that the increase in Dearness Allowance (DR) in the pension will be changed.
Timeline For Formation Of The Commission
The 8th Pay Commission can be formed by the end of the year 2024, as per government sources. The Commission will submit its report in the time frame of 18-24 months; thereafter, the new pay structure will be implemented in 2026. However, the employee unions have heightened their demand for an early implementation and demanded that the new system be introduced from 2025 itself.
What Will Be Necessary For The Employees?
Every government employee is urged to keep all their documents updated, such as the Aadhaar, PAN, and service record. Additionally, keep a tab on the notices of the Finance Ministry and concerned departments for official updates regarding the Pay Commission. Latest updates can be done by being in touch with the employee unions.
