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7th vs 8th Pay Commission: 8th Pay Commission is expected to bring major changes in the salary, pension, and allowances of government employees. After the relief from the 7th Pay Commission, the minimum salary can now increase from Rs 34,500 to Rs 41,000 from the 8th Pay Commission to be implemented from 2026. The fitment factor is likely to be between 1.83 to 2.86. This will give employees a salary hike of up to 40-50%. Also, there is a plan to include DA in the basic and make pension benefits more permanent.

7th vs 8th Pay Commission: Government employees have been waiting for a long time for the formation of the 8th Pay Commission for salary hike. Every pay commission in India has a big impact on the income, allowances and pension of government employees. Earlier, the recommendations of the 7th Pay Commission had given a lot of relief to the employees and now even bigger changes are expected from the 8th Pay Commission. The question is what will be the difference between the 7th Pay Commission and the upcoming 8th Pay Commission and how much can the salary of the employees increase.

When were the recommendations of the 7th Pay Commission implemented?

According to a report by Live Mint, the recommendations of the 7th Pay Commission were implemented from January 1, 2016. A pay matrix of 19 levels was introduced to increase transparency in it. The minimum basic salary was increased from Rs 7,000 to Rs 18,000 per month and the fitment factor was fixed at 2.57. This meant that the new salary was calculated by multiplying the old salary by this ratio. There was also a major improvement in pension and the minimum pension was increased from Rs 3,500 to Rs 9,000.

Pay Matrix Structure

According to a BankBazaar report, the 7th CPC fixed the basic salary level-wise. The starting salary at level-1 was Rs 18,000, while at level-7 it reached Rs 44,900 and at level-18 it reached a maximum of Rs 2,50,000. This system gave clarity and a permanent structure in salary to the employees.

According to a Navbharat Times report, the government has approved the 8th Pay Commission in January 2025. However, its exact timeline has not been decided. It is believed that it can be implemented from January 1, 2026, but according to the situation, it is also likely to be postponed till 2027. If there is a delay in this, then the salary difference can be paid to the employees as arrears.

Fitment factor and possible salary increase

According to reports, the fitment factor in the 8th Pay Commission can be between 1.83 to 2.86. If the current basic salary of an employee is Rs 18,000 at Level-1, it can increase to around Rs 32,940 to Rs 44,280. It is estimated that this time the salary of the employees can increase by 40 to 50%. The minimum salary is likely to reach Rs 34,500 to Rs 41,000, which will provide great relief to the employees.

Changes in allowances and pension

The 8th Pay Commission will not only affect the salary, but also the allowances and pension system. Review and restructuring of DA, HRA and Transport Allowance is possible. There is also a possibility that DA may be reset and included directly in the basic salary, so that pension benefits can be permanent for a longer time. Apart from this, the system of performance based incentives is also being considered.

8th Pay Commission will change the fate

Overall, the 7th Pay Commission brought a big change for the employees, but there are more expectations from the 8th Pay Commission. On its implementation, there can be a significant increase in the salary of the employees, improvement in allowances and long-term benefits in pension. If it is implemented in 2026, the financial condition of government employees will be better than ever.

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