What Can Central Government Pensioners Expect from the 8th Pay Commission?

Impact of the 8th Pay Commission on Central Government Pensioners

With the Union Budget 2025 just around the corner, the govt. has officially approved the 8th Pay Commission, bringing hope for salary and pension hikes for central government employees and retirees. As the current 7th Pay Commission nears its conclusion in 2026, the decision to set up the new commission was made in a Cabinet meeting chaired by Prime Minister Narendra Modi. This commission will have a chairman and two members who will work closely with central and state ministers, along with other stakeholders, to finalize crucial decisions.

One of the biggest expectations from the 8th Pay Commission is an increase in the fitment factor, which determines salary and pension calculations. The existing factor of 2.57 is likely to be raised to 2.86. If implemented, this could mean the minimum basic salary jumps from Rs 18,000 to Rs 51,480. Pensioners, too, are in for a major relief, with monthly pensions expected to rise from the current Rs 9,000 to anywhere between Rs 22,500 and Rs 25,200.

For those unfamiliar, the central government sets up a pay commission roughly every ten years to reevaluate and update salary structures. These commissions not only revise salaries but also define their priorities, including pension adjustments. As it stands, around 49 lakh government employees and nearly 65 lakh pensioners will be directly impacted by the recommendations of the upcoming 8th Pay Commission.

Since the introduction of the 7th Pay Commission in January 2016, salaries and pensions have been structured according to its guidelines. However, with the upcoming revisions, pensioners can expect substantial changes that will align with the proposed hike in the fitment factor. A report by Financial Express suggests that these adjustments could significantly enhance financial stability for pensioners in the years ahead.

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