8th Pay Commission Update: What Central Govt Employees Can Expect in Pay Hike

The Central Government is set to establish the 8th Pay Commission soon, potentially increasing the basic pay, allowances, and pensions of government employees and retirees.

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8th Pay Commission

Great news for government employees and retirees! The Modi government has assured the formation of the 8th Pay Commission, which could boost basic pay, allowances, and pensions. Changes are expected upon the commission's establishment.

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Central Government Employees

Experts believe the Dearness Allowance (DA) system might see changes. If the commission is formed on time, its recommendations could be effective from January 1, 2026. The Central government is reportedly in active discussions with state governments.

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Pension Increase

Last month, Government Employees National Confederation (GENC) representatives met with Union Minister Jitendra Singh, presenting demands including addressing the 8th Pay Commission delay, scrapping the New Pension Scheme (NPS), restoring the Old Pension Scheme (OPS), and clearing the 18-month DA arrears.

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Basic Pay Increase

The Fitment Factor determines the pay hike. It was 2.57 in the 7th Pay Commission. Experts estimate it could range from 1.92 to 2.86 in the 8th, impacting basic pay, HRA, TA, NPS, and CGHS.

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Central Government Employees

Calculations for the pay hike across different Grade Pay levels (1900, 2400, 4600, 7600, 8900) are underway and will be announced soon. The 8th Pay Commission is expected to significantly improve the livelihood of central government employees and retirees.