The central government has approved the formation of the 8th Pay Commission. The Seventh Pay Commission was implemented in the year 2016. After this, the minimum salary of government employees increased from Rs 7,000 to Rs 18,000. At the same time, there was a huge increase of 23.66 percent in the pension of pensioners. Let us know how much the salary of central employees and pension of pensioners will increase after the implementation of the Eighth Pay Commission. Also, what will be its effect on gratuity?

How much will the basic salary increase?
The Seventh Pay Commission was implemented in 2016. According to this, the minimum is Rs 18,000. The dearness allowance on this is currently 53 percent. By January 2026, it will increase to 59 percent. This means that the minimum salary will be Rs 28,620. Now, like the seventh pay commission, if the fitment factor remains 2.57 in the eighth commission, then the minimum salary will increase to Rs 46,620. In this way, after the eighth pay commission, the minimum salary will increase by about 38 percent to Rs 46,620.

What will be the maximum salary?
If we talk about the seventh pay commission, the basic salary of a higher-grade secretary-level officer is currently Rs 2.5 lakh. Dearness allowance is not added to their salary. If the fitment factor remains 2.57 in the eighth pay commission, then their salary will increase from two and a half lakh to Rs 6.4 lakh (250000x2.57). At the same time, the maximum limit of gratuity is Rs 30 lakh. If the government does not increase it, then it will remain the same.

What will be the effect on pension?

When the seventh pay commission was implemented, the pension of retired central employees increased by about 23.66 percent. On the other hand, under the Sixth Pay Commission, the pension was increased by 14%. If we look at the fitment factor, then the pension is expected to increase by about 34% in the Eighth Pay Commission. For example, the basic pay of a retired central government employee is Rs 50,000 and according to this, he gets a pension of Rs 25,000 per month. Now if there is an increase of 34% in this, then it will become Rs 33500 (25000+8500).

Gratuity will also increase.
The effect of the implementation of the new pay commission is seen in salary, pension as well as gratuity, which is received on retirement or on leaving the job after a certain period. Currently, an employee with a basic salary of Rs 18,000 gets a gratuity of about Rs 4.89 lakh after 30 years of service. If we calculate it by a fitment factor of 2.57, then it will be Rs 4.89x2.57=12.56 lakh. Gratuity is calculated based on (last basic salary) x (15/26)x (number of years of service).

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