In anticipation of the announcement of the authorized 8th Pay Commission, around 1 crore central government employees and pensioners were graced with a brief moment of elation. The Cabinet, further on its meeting, had given its nod to the 8th Pay Commission.
Ashwini Vaishnav had himself made known to the employees at the podium, informing them, thus, that the end of the 7th Pay commission, in 2026, would naturally be the 8th. Central employees pay might escalate quite reasonably as if they are going to receive a heavy raise.
There will be a bumper increase in salary
Central employees and pensioners have been demanding the formation of the about-to-8th Pay Commission for a long time. After the constitution of the 8th Pay Commission, it shall now come up from January 1, 2026. It is assumed that after the implementation of the 8th Pay Commission, there will be a substantial increase in the salary of the central government employees and pensioners’ pensions.
When will the 8th Pay Commission be formed?
Agni Vaishnav has disclosed the approval of the 8th Pay Commission but a genuine question arises about the framing of the commission. The previous commission’s duration is until 2026. an expectation for it to be constituted shortly before the commencing date.
The commission shall require a chairman and two members. Discussion, debate, and time are further necessary in order to scrutinize the recommendations of a commission. 7th Pay Commission was in action being a report to be considered, instituted in 2014, and then the report was actually implemented in 2016. It will be needed to be functional at the soonest possible time.
Calculation of increase in basic salary
The pay for central employees is due for a major rise after the 8th Pay Commission. According to media reports, the Commission would consist of a fitment factor of 2.6 to 2.85. The minimum basic salary would be 50,000 INR considering that 2.85 is its maximum. However, now we consider allowances.
Know how much gross salary will be available
In the basic salary are dearness allowance (DA), HRA, travel allowance (TA), child education allowance, etc. HRA, being a large part, amounts to an accrued period of time for transport expenses incurred due to the particular state of the category of cities. Conversely, DA plays a major role.
Cities are classified into three categories for HRA, namely X, Y, and Z cities. In simplified terms, X cities are the higher HRA category, and Z cities are the lowest recipient of HRA. All such allowances are computed to frame the gross salary.
Calculate the actual gross salary
The basic assumption sees the central government employees making the due at around 51300 INR. This is further made a total of 145905; a final increase is expected to be for another HRA.
Look how does one get a gross salary in the 7th Pay Commission based on the HRA:
24%: X category city
16%: Y category city
8%: Z category city
Minimum basic HRA- As decided by the 7th Pay Commission:
X Category: Rs.5400
Y category: Rs.3600
Z category city: Rs.1800
Expected minimum basic HRA in the 8th Pay Commission:
X Category: Rs.12312
Y category: Rs.8208
Z category city: Rs.4104
Therefore the employees are going to look forward to higher grading as Rs 51300+Rs 12312=Rs 63612 if they stay in Cities of X category. Similarly, in the Cities of Y category, they shall look to earn Rs 51300+Rs 8208=Rs 59508. Very last in this category would go to cities of Z category; their salary for the same would amount to Rs 51300+4104=RS 55404. And some form of allowances can be there to escalate the salary. Besides, DA won’t be inclusive because it’s calculated afresh and amplified based on inflation essentially.
