Indian government recently said that they would be increasing the salaries of more than one crore central government employees and pensioners. The Dearness Allowance (DA) was increase by 3% recently and now it stands at 53%. This came after an early this year’s 4% DA hike which the company said would assist its employees and pensioners meet the inflationary costs in their lifestyle. DA is generally changed twice a year, in January and July, as of now, It has over one crore employees and pensioners in India.
Increase in Salary after DA Hike
Besides the DA increase, there is another piece of good news for the central employees as well The DA increase . There is a buzz around the country that the 8th Pay Commission bill is around the corner and this will definitely impact the basic pay of employees. The 7 Pay Commission which has been executed from January 1, 2016, has enabled one crore government employees as well as pensioners. But now employees are expecting the 8th Pay Commission to be implemented by January 2026.
The 8th Pay Commission
The 8th Pay Commission does not occur more often than once in ten years, and employees believe that the government will implement it soon. It appears that this commission will be the cause of dramatic changes to the base employee’s salary and their pensions. In an opinion of professional observers it seems that the minimum wage for central employee may increase, and could even double, whilst pensions could also significantly increase.
For instance, where the rate of the Fitment Factor is set at 1.92, the beginning scale could increase from ₹18,000 to ₹34,560. The minimum pension underStar can also rise from Rs 9,000 to roughly Rs 17,280 and. These changes shall help employees and pensioners, when due to inflation their financial position would get weakened.
Pay Scales and Calculations after 8th Pay Commission
The new pension system will peg pension at twenty five percent of the average of the last twelve months earnings. Employees who have been hired before 2004 will be retiring in the next few years, by about 2029. Should the development of the 8th Pay Commission occur in 2026, then the minimum wages can increase up to ₹34.560 and a maximum wage of ₹4.8 lakh. Further, five DA hikes by 2029 could bring up the DA to 20% of the base salary, accrued pension of ₹20,736.
