The central government has recently approved the Eighth Pay Commission. However, central employees and pensioners will start receiving its benefits from January 1, 2026. With the implementation of the 8th Pay Commission, central employees’ salaries will see a significant increase. Pensioners may also receive a substantial hike in their pensions. Some pensioners could get a pension of up to Rs 3.5 lakh per month after the new pay commission is implemented. Over 1 crore employees and pensioners will benefit from the 8th Pay Commission.
Who Will Get a Rs 3.5 Lakh Monthly Pension?
In the 7th Pay Commission, the fitment factor was 2.57. The minimum pension for retired employees was set at Rs 9,000 per month, and the maximum pension was Rs 1,25,000 per month. However, under the 8th Pay Commission, there are discussions about increasing the fitment factor to 2.86. If this happens, the minimum pension will rise to Rs 25,740 per month, marking an increase of 186%. As a result, the maximum pension for employees retiring from high-ranking positions could reach Rs 3,57,500 per month.
Will Dearness Allowance (DA) Go to Zero?
Dearness Relief (DA) is given to government employees to counter inflation. Currently, it is 53% of the basic salary and pension. DA is revised twice a year based on the Consumer Price Index (CPI), on January 1 and July 1. For example, if a pensioner’s basic pension is Rs 10,000, then after adding DA, the total becomes Rs 15,300.
As the new year approaches, central government employees eagerly await updates on the next dearness allowance (DA) revision. Scheduled for January 2025, this potential hike could bring welcome relief amid rising living costs.
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With the implementation of the 8th Pay Commission, there will be a change in salary and pension. This raises the question: Will the DA increase from 53%, or will it go to zero? Each time a new pay commission is introduced, the old DA is included in the new minimum basic salary and pension. As a result, the DA can be reduced to zero.
How Many Times Can Dearness Allowance Increase?
The 8th Pay Commission will be implemented on January 1, 2026. This means that the DA will be revised twice more, in January 2025 and July 2025. DA usually increases by 3% each time, so it will rise to 59% before the 8th Pay Commission is implemented. However, if there is a delay in the implementation, the government may announce an additional 3% DA increase for January 1, 2026. In that case, DA will rise to 62%. When the 8th Pay Commission is finally implemented, the DA will be merged with the basic salary and pension, and from that point, the DA will start at zero. Afterwards, it will be revised twice a year.