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Retirement

​8th Pay Commission: Millions Await Key Updates On Pay Hike, Pension Revision

Approved by the Union Cabinet in January 2025, the 8th Pay Commission is set to redefine salaries and allowances. Here's everything you need to know!

8th Pay Commission Updates You Need To Know (AI Generated Image)
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Summary

Summary of this article

8th Pay Commission has received a nod of approval from the Union cabinet.

Timeline hasn't been announced yet, but the past patterns are there to suggest us.

Reports so far indicate that the 8th CPC may propose 1.8 times the initial factor.

The 8th Pay Commission announcements has people waiting for updates and more details. This year, the 8th Pay Commission has received a nod of approval from the union cabinet in January 2025. Until now, there hasn't been any disclosure on any details, which has left employees and pensioners feeling anxious. The 8th Central Pay Commission is tasked with overseeing the reviewing and revising the terms for the employees and the pensioners. Even determining the new allowances and adjustments for around 65 lakh retired people.

Though the timeline hasn't been announced yet, the past patterns are there to suggest us that the process can take up to two to three years. From constituting it to the final implementation of these pay scales take up a lot of time. The 7th pay was announced in February 2014, and its report was submitted in November 2015, and later January 1st, 2016, it came into effect for the employees and pensioners. The 6th pay commission followed a similar route as well, and the 8th pay commission is expected to follow the same.

The reports so far indicate that the 8th CPC may propose 1.8 times the initial factor, this is a metric that determines how much the basic pay will increase under the new and revised structure. If this is adopted, it would result in a significant rise in salaries across different employee grades. This kind of revision would not only reshape the pay scale but also impact the pre-existing allowances and pensions. Hence, this would dictate the overall compensation framework for millions.

The Ministry of Finance has confirmed that discussions are going on with key departments including defence, Home Affairs, and the department of Personal and Training. This is to ensure the coordination and even finalise the scope of the commission's work. Once effective, the new pay scale will also require the centre to settle debts and dues.

Pay commissions are generally set up every decade to help the employees and pensioners cope with inflation, economic shifts, and ever-changing job responsibilities. Hence the 8th Pay Commission holds a significant importance, it is not just a relief for employees but also people who are not in the workforce anymore. The CPC ensures that their present and past workforce remains safeguarded from economic tensions and changes.

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