8th Pay Commission: The Modi government at the Center has approved the Unified Pension Scheme (OPS), breaking the OPS scheme to please the employee class. PM Narendra Modi chaired the cabinet meeting that approved it. We will implement this scheme without any hassle from April 1, 2025.
Now the question in everyone’s mind is that after the implementation of OPS, if the government brings the 8th Pay Commission on January 1, 2026, then how much will be the increase in the salary. Do you know that such changes are going to happen in the new pay commission and the new pension system, which you would not have even imagined? The government is contemplating significant changes to these systems.
First-class to last-class employees will receive a huge salary increase under the new pay commission. In the new pay commission, the salary of category 1 can be Rs 34560, and that of the level can be Rs 4.8 lakh. You can read about the impact of the new pay commission on UPS below, which will clear up any confusion.
Which employees will benefit from a 50 percent pension?
The government has approved the UPS scheme, which includes some significant conditions. Certain conditions prevent all employees from receiving a 50 percent pension after retirement. However, central employees have been demanding the restoration of the old pension scheme for a long time. This scheme did not require any salary contributions.
In NPS, employees are required to deposit 10% of their monthly salary into their pension. The government contributes 14 percent. Only employees who have served for at least 25 years will receive a 50 percent pension under the government’s UPS scheme. There are reports of employee dissatisfaction with certain OPS conditions.
Be aware of the end date of the 7th Pay Commission.
The central government will soon implement the UPS scheme, starting on the first day of the upcoming financial year, 1 April. The scheme will provide benefits to the employees until 2029. The employee’s service period must be 25 years for half the salary pension. If the employee does not have a sufficient service period, they will not be eligible for the 50% pension.
The 7th Pay Commission will expire on December 31, 2025, for UPS employees who have retired before the age of 25. It will also be interesting to see what the government does with the 8th Pay Commission moving forward. According to some media reports, the 8th Pay Commission may decide to increase the fitment factor to 1.92. This decision involves raising the minimum salary from Rs 18,000 to Rs 34,560. Talking about the maximum salary, it can increase from Rs 2.5 lakh to Rs 4.8 lakh.
