Government employee and pensioners’ eyes are now set on the announcement of the 8th Pay Commission. Sources connected to the Ministry of Finance have indicated that it is likely that an official announcement regarding the formation of the commission will come in June-July this year. Recommendations of the 7th Pay Commission were implemented 9 years back but employees’ demands have risen alongside inflation growth. Will the basic pay in this case be increased by 3 or 4 times? Will DA be fully merged into the basic pay? These questions have now come to the fore for discussion. Let us take a detailed look at the latest developments till April 2025.
Current Status Of Commission Formation
The central government has yet to make the official announcement regarding the setting up of the 8th Pay Commission. But officials closeted with the Finance Ministry said that it is probably to come in June-July 2025 after the Cabinet approval. Names for the chairman and members of the commission are pending final approval. Looking at the past experiences of commissions, in the present case too, the onus may go to a retired Supreme Court judge or a senior officer.
What Are The Salary Hike Expectations?
The employee unions have raised demands for an increase in basic pay by 3.68 times in front of the government. If this demand finds acceptance, this would mean that the minimum wage would go up from ₹ 18,000 to ₹ 66,000. Modifications in the fitment formula are also expected to benefit junior-level employees in an exceptional manner. Experts feel that a 2.5 to 3 times increase would be accepted by the government as any amount higher will be difficult because of the economic squeeze after the Covid pandemic.
What Will Happens To Dearness Allowance (DA)?
Right now, DA is more than 50%. Unions of employees feel that the time is ripe to merge DA with basic pay. This is most likely to be considered seriously in the 8th Pay Commission. Should this happen, it will entail easier calculations regarding DA going forward, and pensioners, too will get a rock-stable amount.
What Changes Will Be There For Pensioners?
Amendments to the rules governing pensions are expected. Currently, pension is paid at 50% of the basic pay, which is now being demanded to be increased to 60%. The push is also on to have greater transparency in the formula for pension revision. Some experts consider extra increments may be awarded to pensioners above the age of 80.
Preparation For The Next Phase
It is expected that the recommendations of the 8th Pay Commission will come into effect by 2026. However, this could also be delayed in the event that 18-24 months is deemed necessary for the commission to present its report. This possibility should be kept in mind by the employees while they loan out their budgets. It has also come to light from government sources that this time the commission may use data analytics and AI tools for more scientific preparation of the salary structure.
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