8th Pay Commission: The central government has approved the 8th Pay Commission, under which the allowances, pension and salary of the current and retired central employees will be revised in accordance with the inflation rate.
8th pay commission: The central government has approved the 8th Pay Commission, under which the allowances, pension and salary of the current and retired central employees will be revised in accordance with the inflation rate. It was announced by Union Minister Ashwini Vaishnav in January, but since then there has been a lot of discussion about what benefits it is likely to have and when it will be implemented. Let us tell you that future steps depend on the ‘Terms of Reference’ or TOR. However, Shiv Gopal Mishra, Secretary, Employee Side, National Council-Joint Advisory System, has told NDTV Profit that it is expected to be approved ‘as soon as possible’.
What is the detail
How the salary of a central employee is structured and how TOR affects it. Let’s know in detail…
Salary structure of central government employees
The salary of a government employee consists of basic pay, dearness allowance (DA), house rent allowance (HRA) and transport allowance. According to a report by Ambit Institutional Equities, the basic salary of employees is 51.5 percent of their total income –
- DA is about 30.9 percent,
- HRA is about 15.4 percent and
- Travel allowance is about 2.2 percent.
Know what is ToR, why is it needed?
ToR is a framework that defines the scope of the Pay Commission and specifies the areas in which it has to make recommendations. In the absence of ToR, the Commission does not get official recognition and is unable to start its functions, making it extremely important for the implementation of the Pay Commission. Without it, decisions on amendments made by the Commission, including basic pay structure, allowances, pension revisions and other changes, will not be implemented.
When will the Eighth Pay Commission submit its recommendations?
According to a report by Ambit Institutional Equities, the 8th Pay Commission recommendations are expected to be submitted by the end of 2025 and are expected to be implemented from January 2026. However, the actual implementation will depend on the completion of the report, its submission to the government and the approval of its recommendations.
Who will benefit from the 8th Pay Commission?
The report states that the 8th Pay Commission recommendations are expected to be implemented in FY27 and are likely to lead to a 30-34 per cent increase in government salaries and pensions. This is expected to benefit over one crore central government employees and retirees – about 50 lakh central government employees, including defence personnel; and about 65 lakh central government pensioners, including defence retirees.
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