Business: There may once again be a big increase in the salaries of government employees. The Union Cabinet on Tuesday approved the terms and references of the Eighth Pay Commission. The recommendations of the Pay Commission will benefit approximately 50 lakh central government employees and 69 lakh pensioners. The Commission will consist of a Chairperson, a Member (part-time) and a Member-Secretary. It will give its recommendations within 18 months from the date of its formation. This panel, headed by former Supreme Court judge Ranjana Prakash Desai, will submit an interim report to the government.
What update has the government given on the 8th Pay Commission?
When asked about the date of implementation of the Pay Commission recommendations, Information and Broadcasting Minister Ashwini Vaishnav said, “The specific date will be decided after the interim report comes… but, probably it will be January 1, 2026.” The Cabinet had given in-principle approval for the formation of the 8th Pay Commission in January 2025. Based on its recommendations, the government will decide the amount to be given to central employees and pensioners. In such a situation, after the implementation of the Eighth Pay Commission, the increase in salary of all levels of employees is considered certain. It is believed that after the implementation of the recommendations of the Eighth Pay Commission, there may be a big increase in the salary of Lower Division Clerk (LDC) and pension of pensioners. We will know about this further, first let us know what the Seventh Pay Commission did, and what benefits the employees got from its implementation.
What changed after the recommendations of the Seventh Pay Commission?
The Seventh Pay Commission was constituted in February 2014, headed by Justice A.K. Mathur did it. The recommendations of the Commission were implemented from 1 January 2016. Under this, the minimum basic pay was increased from ₹7,000 to ₹18,000 and the fitment factor was fixed at 2.57 times. Apart from this, the grade pay system was removed and a new pay matrix system was implemented, which made the pay structure simple and transparent.
What is the current salary of LDC?
The post of LDC comes in Level-2 among Central Government employees and its grade pay is ₹ 1900. Under the Seventh Pay Commission, the basic salary of LDC was fixed at ₹18,000-19,000. Along with this, if HRA, DA, travel allowance etc. are added, the total salary becomes approximately between ₹ 37,000 to ₹ 39,000.
How much can the salary increase with the 8th Pay Commission?
The 8th Pay Commission will give its recommendations mainly on fitment factor and minimum basic pay. Currently the minimum basic salary ranges between ₹18,000 to ₹19,900. This is likely to be increased to around ₹26,000. Considering the demand of employee unions and the level of inflation, this increase is considered certain. The fitment factor in the Seventh Pay Commission was 2.57 times. If it is fixed at 3.00 to 3.42 times in the Eighth Pay Commission, then there will be a significant increase in the salary of LDCs. For example, if the new basic salary of LDC is considered to be ₹ 19,900 and fitment factor is 3.00, then the new salary can reach ₹ 59,700.
What do pensioners expect from the new pay commission?
It is believed that on the basis of the recommendations of the Eighth Pay Commission, pensioners can get big benefits. Currently, full pension is given after completing 15 years of service, but this period can be reduced to 12 years. This means that employees will become eligible for pension only after completing a short-term job. With this, employees retiring mid-service will also get financial security after retirement. Eighth Pay Commission It can also promote long-term retention of people in government jobs. If this proposal is approved, it can benefit thousands of employees nearing retirement.
Will the minimum basic pension increase from Rs 9000 to Rs 25000 per month?
According to estimates, following the recommendations of the Eighth Pay Commission, the minimum basic pension may increase from ₹9,000 to ₹25,000 per month. This means it is possible to increase the pension by almost three times. This will provide financial strength to lakhs of pensioners. At present, 58% DA (dearness allowance) is also available on basic pension. The Eighth Pay Commission is expected to make the Uniform Pension Scheme more simple and transparent, so that all pensioners can get benefits on time and on an equal basis. This time the fitment factor is likely to be between 1.83 to 2.46. This factor will decide how much the income of employees and pensioners will increase. In simple words, the higher the fitment factor is fixed, the more the salary and pension will increase.
A new pay matrix will also come based on the recommendations of the new pay commission.
The Eighth Pay Commission will issue a new pay matrix. In such a situation, the new basic pay of employees like LDC can start from ₹ 26,000 and reach ₹ 59,700 or more in the first cell of Level-2 or 3. Employees are now hopeful that the Eighth Pay Commission will also provide similar benefits and in view of inflation, the Commission will approve the recommendations for major changes in the salary calculations.
