Mumbai, January 28: The government has recently approved the establishment of the 8th pay commission, signalling a major shift in the salary and pension framework for central government employees. This decision follows the nearing end of the seventh pay commission's tenure, set to conclude in December 2025. Let us know what is the major difference between the 7th and 8th commission.

The government has officially approved the establishment of the 8th Pay Commission, which will work on revising the salaries and pensions of millions of central government employees and retirees. This significant step comes as the term of the 7th Pay Commission approaches its conclusion in December 2025. Union Minister Ashwini Vaishnaw has stated that the recommendations of the 8th Pay Commission are expected to be implemented starting January 1, 2026. 8th Pay Commission: Retirees To Receive 186% Boost in Pensions With Approval of 2.86 Fitment Factor? Check Details Here.

7th Pay Commission

Implemented on January 1, 2016, the seventh pay commission brought several key changes to the pay structure. It increased the minimum basic pay from INR 7,000 to INR 18,000 per month and set the fitment factor at 2.57, ensuring uniform salary hikes across all levels. Key allowances such as Dearness Allowance (DA), House Rent Allowance (HRA), and Transport Allowance (TA) were revised to match current economic conditions. Additionally, the minimum pension was raised from INR 3,500 to INR 9,000 per month, and a simplified pay matrix with 19 levels was introduced to improve transparency and consistency in salary distribution. 8th Pay Commission: Will Central Govt Employees’ DA Reset to 0? Here’s What To Expect.

8th Pay Commission

The upcoming pay commission is expected to bring several key changes to benefit central government employees. Proposals suggest raising the minimum basic pay significantly, potentially reaching INR 34,500 to INR 41,000 per month, along with an increase in the fitment factor to 2.86 for higher pay hikes. Allowances such as Dearness Allowance (DA), House Rent Allowance (HRA), and Transport Allowance (TA) are likely to be revised to reflect inflation and current economic conditions. Pension reforms may include higher amounts and steps for timely disbursement aligned with the new pay structure. Additionally, performance-based incentives are being discussed to improve employee productivity and efficiency.

Major Difference Between 7th and 8th Pay Commission

The 8th Pay Commission is set to bring notable improvements compared to the 7th Pay Commission. The minimum basic pay, which was increased to INR 18,000 in the 7th Pay Commission, is expected to rise significantly to INR 34,500–41,000. The fitment factor, a key determinant of salary increments, is likely to increase from 2.57 to 2.86. Additionally, allowances such as DA, HRA, and TA are anticipated to undergo a more comprehensive revision to address current inflation rates. Pension reforms are also expected, with higher payouts and improved disbursement mechanisms. Unlike the 7th Pay Commission, the 8th Pay Commission is exploring performance-linked pay structures to enhance employee productivity and efficiency.

(The above story first appeared on LatestLY on Jan 28, 2025 07:18 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).