8th Pay Commission: Central government employees may get ₹19,000 hike
What's the story
With the 8th Pay Commission, central government employees are set to get a huge salary hike. This could mean an additional ₹19,000 in their monthly earnings, according to Goldman Sachs.
The proposed changes would benefit nearly 50 lakh central government employees and 65 lakh pensioners.
Presently, most mid-level central government staff earn nearly ₹1 lakh per month before taxes.
Budget impact
Salary increases linked to budgetary allocations
The expected salary hikes are directly linked to the budgetary allocations announced by the government.
According to an NDTV report, if ₹1.75 lakh crore is allocated, salaries could go up to ₹1,14,600 per month.
A higher allocation of ₹2 lakh crore could take this number up to ₹1,16,700 per month.
The highest increase could be seen with ₹2.25 lakh crore allocation where salaries could go up to ₹1,18,800 per month.
Commission formation
No official timeline for 8th Pay Commission's establishment
Despite the government's confirmation of the 8th Pay Commission's establishment, no official timeline has been released.
Speculations suggest it may be formed in early April with its recommendations implemented by either 2026 or 2027.
Once established, the commission will consult employee unions and other stakeholders to determine salary revisions and fitment factors.
Unions are expected to advocate for a fitment factor similar to or higher than that of the previous commission.
Employee benefits
How 8th Pay Commission will benefit employees
The Cabinet approved the 8th Pay Commission on January 16. The 8th Pay Commission is a government-appointed body that periodically reviews and recommends salary revisions depending on economic conditions, inflation, and cost of living.
Prime Minister Narendra Modi had lauded the move as a way to help central government staff fight high inflation.
He said the commission's implementation would greatly improve employees' quality of life and boost consumption levels.