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  • 8th Pay Commission: Will salary see a major hike and gratuity triple?

8th Pay Commission: Will salary see a major hike and gratuity triple?

The government has approved the 8th Pay Commission, promising significant increases in minimum wage and pensions for government employees. Benefits extend beyond salary, with potential tripling of gratuity amounts and increases to DA, HRA, and TA.

Gargi Chaudhry | Published : May 13 2025, 05:25 PM
2 Min read
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The central government has granted approval for the formation of the 8th Pay Commission.

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As a result, the minimum wage and pension amounts for government employees will increase significantly. Not just salary increases, employees will also receive other benefits. For instance, the gratuity amount could nearly triple.

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The 8th Pay Commission will determine the salary for government employees, considering the rising inflation in the market.
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This will benefit 4.9 million central government employees and 6.5 million pensioners.
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Employees are pleased that the work on the 8th Pay Commission has begun before the 7th Pay Commission's term expires.
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It is expected that the maximum gratuity amount may increase with the formation of the new pay commission.
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While the current maximum gratuity is 20 lakhs, it could reach 25 or even 30 lakhs after the new pay commission is formed.
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For example, if you have served for 30 years with a salary of Rs 18,000, the gratuity is Rs 4.89 lakhs. After the new pay commission, it could be Rs 12.56 lakhs.

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Currently, the fitment factor is 2.57 as per the 7th Pay Commission, increasing the minimum basic salary from Rs 18,000 to Rs 46,620.

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However, the fitment factor is expected to increase with the 8th Pay Commission, potentially raising the new minimum basic salary to Rs 51,000.

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The formation of the 8th Pay Commission doesn't just mean an increase in the minimum wage.
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Just as the salary could increase by 25% to 35%, DA, HRA, TA, etc., will also increase.
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It is also believed that pension benefits for retirees could increase by 30%.
Gargi Chaudhry
About the Author
Gargi Chaudhry
Gargi Chaudhry currently works as a chief copy editor with an experience over 7 years of experience in news writing, reporting and editing. She primarily covers national news, politics, technology and auto. She holds Master's degree in Communication and Journalism and has completed Digital Marketing certification from MICA, Ahmedabad. She has previously worked with Republic Media, Deccan Chronicle. Read More...
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