8th Pay Commission Latest Update: The central government has given the green signal to the 8th Pay Commission, which is likely to increase the salary and pension. However, an important step of the Pay Commission has not been approved yet.
8th Pay Commission News: The coming year may bring new hope for central government employees and pensioners. The government has finally given the green signal to the 8th Pay Commission , which means that now the increase in salary, pension and allowances is almost certain. In this era of inflation, millions of families were waiting for a salary hike for a long time, and now the government has officially started working on their wish.
However, now everything depends on the approval of the ToR (Terms of Reference). Meanwhile, Shiv Gopal Mishra, Secretary, Staff Side, National Council-Joint Advisory System, told NDTV Profit that it is expected to be approved ‘as soon as possible’. Let’s know what this ToR is
ToR i.e. Terms of Reference is a document that defines the scope of work of a commission, especially a pay commission. It tells the subjects on which the commission has to work, such as salary structure, allowances, pension etc. You can consider it as a map or guideline for the working of the commission.
Why is this most important?
Without ToR, the Pay Commission does not get government recognition, that is, it cannot officially start working. It gives clear direction to the Commission on which subject it has to make recommendations and within what limits it has to work. Without ToR, the formation of the Commission is considered incomplete.
More than 50 lakh employees benefited
The 8th Pay Commission will directly benefit about 50 lakh central government employees and 65 lakh pensioners. This also includes defense sector employees and their pensioners. That is, in total, about one crore people will get financial strength due to this.
The government is hoping that the commission’s report will come by the end of 2025 and it can be implemented from January 2026. That is, if everything happens on time, then after just one and a half years, a big change can be seen in both the salary and pension of the employees.
How is salary decided?
The salary of central government employees consists of four main components:
- Basic Pay: Around 51.5%
- Dearness Allowance (DA): Around 30.9%
- House Rent Allowance (HRA): About 15.4%
- Travel allowance: around 2.2%
How much will the salary increase?
Under the new pay commission, it is estimated that salary and pension may increase by 30-34%. Currently, the minimum wage is Rs 18,000, which can increase to around Rs 32,940 (if the fitment factor is 1.83) or Rs 44,280 (if it is 2.46). At the same time, dearness allowance (DA) is also likely to increase twice before the commission is implemented, which can increase it to about 60%.
