8th Pay Commission: Central govt peon earnings might outpace IT salaries

The central cabinet has approved the 8th Pay Commission, bringing smiles to the faces of central government employees.

Salary difference between government and private employees

There is already intense speculation about the salary difference between government and private employees. Experts believe that with the 8th Pay Commission, a peon will earn more than an IT professional.

Minimum basic pay may exceed ₹50,000

Last November, hints about the financial benefits were given, including a fitment factor increase. Experts suggest the minimum basic pay could rise to Rs 51,480.

Additional benefits like DA and HRA

Dearness Allowance (DA), House Rent Allowance (HRA), and other benefits will be added. The minimum salary for Group-D employees could exceed ₹60,000.

Potential increase in basic pay

The 8th Pay Commission may increase the basic pay by 186%. The minimum pension for retirees is expected to increase to ₹25,740.

Potential societal impact of pay disparity

The increasing pay gap may lead to societal issues and increased competition for government jobs. The pay gap may influence inflation, despite recent reductions in government hiring.

Increased competition for government jobs

The pay gap may intensify competition for government jobs among Indian youth. The average annual income of Indian citizens is ₹1.8 lakhs.

Average monthly salary in India

The average monthly salary ranges between ₹15,000-₹20,000, lower than developed nations. The pay gap may affect commodity prices and potentially lead to brain drain.