8th Pay Commission: Let us tell you that ever since the Central Government announced the 8th Pay Commission in January this year, there has been a lot of speculation about the possible fitment factor. Preparations are being made for major changes in the main allowances.
8th Pay Commission: The Central Government has not yet made any major announcement regarding the appointment of key members and finalization of the Terms of Reference (TOR) to revise the salary and other benefits of more than one crore central employees and pensioners. Now all eyes are on the official announcement of the members of the 8th Pay Commission and its ToR.
Let us tell you that ever since the Central Government announced the 8th Pay Commission in January this year, there has been a lot of speculation about the possible fitment factor, which will ultimately decide the amount of increase in the salary of the employees. Since, a lot has been said about the possible salary and pension of the employees, today we are telling you about the possible changes in the allowances under the 8th Pay Commission. Let us know in detail…
Proposal to restructure major allowances
The 34th SCOVA (Standing Committee of Voluntary Agencies) indicated that like previous commissions, the 8th Pay Commission will propose restructuring not only salaries but also major allowances. This meeting was held in March this year. Major changes are being prepared in the main allowances. These allowances include major allowances like HRA (House Rent Allowance), Travel Allowance, Dearness Allowance (DA) and Medical Allowance.
Fixed Medical Allowance may increase to Rs 3,000
In the 34th meeting of SCOVA held on 11 March 2025 at Vigyan Bhavan, New Delhi, a proposal was passed to increase the Fixed Medical Allowance (FMA) for pensioners from the current Rs 1,000 to Rs 3,000 per month.
Why is the increase necessary
The amount of Rs 1,000 currently being received is considered quite inadequate as compared to today’s inflation and rising cost of treatment. Many pensioners had appealed to the government to increase it.
When will the 8th Pay Commission be implemented
This increase is likely to be implemented from January 1, 2026, as it has been recommended to be included in the Terms of Reference (ToR) of the 8th Pay Commission. This means that now it will not remain just a suggestion, but will become a part of the official review.
Increase in fitment factor
In the previous commission, the fitment factor was 2.57 times, which fixed the minimum salary at Rs 18,000. Now there are reports that the government is considering increasing it from 2.8 to 3.0 times. If this happens, the minimum wage can reach Rs 26,000 to Rs 27,000 and the pension can also increase from the current Rs 9,000 to around Rs 25,000. However, it has not been officially confirmed yet.
Possible changes in HRA, travel allowance and other allowances
According to reports, the government is working on new rates and structure of HRA (House Rent Allowance), Transport Allowance and other allowances.
HRA rates may be kept higher in metro cities
TA (travel allowance) calculation may be different for employees posted in rural or semi-urban areas.
Some obsolete allowances may be abolished
According to reports, the government is already considering removing several old and irrelevant allowances to make the system more transparent and practical.
Plans to merge DA into basic pay
Another major change that is in the news is the merger of dearness allowance (DA) into basic pay. While this will not make much of a difference to the overall salary of employees, future hikes in DA rates may be limited.
Delay in execution possible
However, the official announcement of the 8th Pay Commission has not been made yet and the Terms of Reference (TOR) have also not been notified. According to the report, it usually takes 18-24 months from the formation of the commission to the implementation of the recommendations. In such a situation, there is a possibility that these recommendations may not be implemented from January 1, 2026, but may be delayed a little more.
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