Budget 2025: The announcement of the 8th Pay Commission for Central Government employees and pensioners has been in discussion for a long time. Due to the tradition of implementing a new pay commission every 10 years, government employees and pensioners are expecting that the 8th Pay Commission may be announced during Budget 2025. Earlier, the recommendations of the 7th Pay Commission were implemented in 2016 and since then there was an increase in the salary and pension of the employees.
Enhanced DA and DR
Recently the Central Government has increased Dearness Allowance (DA) and Dearness Relief (DR) by 3 percent. After this decision, DA of central employees has now become 53 percent of the basic salary. This increase in DA came into effect from July 2024. After this step of the Centre, many state governments have also increased DA and DR for their employees and pensioners. These recent reforms have raised the expectations of government employees. With possible announcements related to the 8th Pay Commission, they are expecting further improvement in their income.
Will there be a big announcement in Budget 2025?
There has been no official announcement from the government yet regarding the 8th Pay Commission. However, it is likely that Union Finance Minister Nirmala Sitharaman may announce the 8th Pay Commission during Budget 2025 in February next year. There may be a big increase in the salary and pension of government employees if the new pay commission is implemented. The recommendations of the 7th Pay Commission came into effect in 2016, but it was constituted in 2014. On the same lines, if the 8th Pay Commission is announced in 2025, it may take one to two years to be implemented.
There may be a big change in salary and pension
According to reports, the fitment factor for the 8th Pay Commission may be fixed at 3.68. If this happens, the minimum salary of central employees may increase from Rs 18,000 to around Rs 34,560, which will be an increase of about 92 percent. At the same time, the minimum pension for pensioners may increase to Rs 17,280. Like previous pay commissions, this increase will also be decided keeping in mind inflation and other economic factors. During the 7th Pay Commission, the fitment factor was set at 2.57, while the employees had demanded 3.68.
Employees’ expectations increased
Amidst the continuous increase in inflation and expenses, the expectations of employees and pensioners regarding the 8th Pay Commission have increased significantly. It will be interesting to see how the government fulfills these expectations in Budget 2025. If this commission is implemented, it can prove to be a big relief for lakhs of employees and pensioners.
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