Government employees are eagerly awaiting an announcement regarding the 8th Pay Commission, as it is expected to bring significant changes to their salaries and other benefits. Retired government employees are also likely to benefit from higher pensions and additional perks following its implementation. However, the government has not yet provided any indication regarding the implementation of the 8th Pay Commission.
In fact, there are proposals suggesting that performance-based salary revisions or other mechanisms could be introduced as an alternative to the new Pay Commission for revising the salaries of government employees. Regardless of the final decision, government employees are eager to know how their salaries will be revised—whether through a new Pay Commission or a different formula introduced by the government to determine salary hikes. However, the previous two Pay Commissions provide insights into the changes that have occurred in the salaries and perks associated with government jobs.
8th Pay Commission
Trade unions are expecting the government to immediately announce the 8th Pay Commission. Central government employees are closely monitoring any announcements from Finance Minister Nirmala Sitharaman regarding the upcoming Budget 2025. The Union Budget for 2025-26 is scheduled to be presented on February 1, 2025.
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Adhil Shetty, CEO of Bankbazaar.com, says, “Pay commissions are established by the government at regular intervals, typically every 10 years. Besides salary revisions, pay commissions also review and recommend improvements in various allowances (e.g., Dearness Allowance (DA), House Rent Allowance) and benefits (e.g., pensions, medical facilities) to enhance the overall compensation package.”
Here is the detailed comparison between 6th and 7th Pay Commissions and what has changed after the implementation of these two revisions for government employees.
Details6th Pay Commission7th Pay CommissionImplementation Year20062016Pay Bands & Grade PayIntroduced pay bands and grade pay systemReplaced pay bands and grade pay with a simplified pay matrixMinimum Pay₹7,000 per month₹18,000 per monthMaximum Pay₹80,000 per month (for Secretary level)₹2.5 lakh per month (for Cabinet Secretary)Fitment FactorApprox. 1.86 times the basic pay2.57 times the basic payAllowancesRationalized, with a significant focus on HRA and other perksRationalized further, with HRA and other allowances restructuredGratuity Ceiling₹10 lakh₹20 lakh, with provision for periodic increase based on DAPensionRevised with an option for additional pension post-retirement ageMinimum pension set at ₹9,000 per month, » Read More
