Recently, the Union Cabinet led by Indian Prime Minister Narendra Modi approved India’s 8th Pay Commission on January 16, 2025. The committee aims to revise and update the salaries and pensions of central government employees and pensioners after expiry. The seventh remuneration committee will be held at the end of 2025.
- Optical Illusion Brain Challenge: If you have 50/50 Vision Find the number 101 in 18 Secs
- Optical Illusion Eye Test: Try to Find a Knife in this Picture within 20 Seconds If You Have Vigilant Eyes
- Optical Illusion Visual Testr: Can you spot the hidden Taro Root within 12 secs to prove your strong eye power?
- Observation Skill Test: Can you find the odd Cat within 12 seconds?
- Optical Illusion Brain Challenge: If you have 50/50 Vision Find the number 589 among 539 in 10 Seconds?
Important facts related to the 8th Remuneration Committee
Purpose: The main mission of the 8th Pay Commission is to analyze and recommend the pay, benefits and pensions of Central Government Employees (CGE) in line with prevailing economic conditions and rates of inflation.
You are watching: What is 8th Pay Commission? Check Key Details and Expected Rise in DA and HRA Allowance
Implementation date: A specific implementation date has not yet been officially announced, but implementation of the committee’s recommendations is expected to begin on January 1, 2026.
Expected Benefits: Salary commission is expected to suggest a 25% to 35% increase in salary with better allowances like DA, HRA and TA. Pensioners’ retirement benefits will also be increased by up to 30%.
Composition: The committee will have a chairperson and two members who have not yet been appointed. This structure will ensure a comprehensive review of the pay structure at different levels of government employment.
Also Read | 7th Pay Commission: What is Dearness Allowance (DA) and will central employees get salary hike in October 2024?
background
See more : Optical Illusion Visual Test: Only Eagle Eyes Can Spot The Kitten In This Picture Within 12 Seconds
The 8th Pay Commission was set up under intense pressure from trade unions and government employees, who had been demanding a review due to rising cost of living due to the 2016 revision. The previous committee was established in 2014 and recommended implementation in January 2016.
The 8th Pay Commission was constituted with several key objectives to improve the financial condition of central government employees and pensioners in India. The main goals are as follows:
The main objectives of the 8th Remuneration Committee
Revise Salary Structure: The committee aims to update and revise the salaries of central government employees to reflect the current economic conditions and address the rising cost of living and inflation since the last revision of the 7th Pay Commission.
Increased allowances: Various allowances including Dearness Allowance (DA), House Rent Allowance (HRA) and Transport Allowance are expected to be adjusted to ensure they are in line with contemporary costs of living.
Improving pension benefits: The committee will focus on increasing pension benefits for retirees, potentially by 30%, to improve their financial security in retirement.
Standardized Fit Factor: An important goal is the standardized fit factor, which is the multiplier used to determine salary increases. The move is aimed at ensuring fair salary adjustments across different employee groups and streamlining the salary adjustment process.
See more : Observation Skills Test: Can you find the number 6849 among 6649 in 10 seconds?
Closing Pay Disparities: The committee works to address pay disparities between different employee groups and ensure fair pay structures reflect their roles and responsibilities.
Economic impact: By increasing wages and pensions, the committee aims to increase the disposable income of government employees and retirees, which can stimulate economic growth through increased spending. Also Read | Who is the founder and CEO of Hindenburg Research Centre? Check education, career details and net worth
Recently, allowances like Housing Rent Allowance (HRA) for central government employees are expected to undergo major changes with the Dearness Allowance (DA) being increased to 50%. Here are the expected adjustments:
House Rent Allowance (HRA)
- Revised rates: As per the recommendations of the 7th Pay Commission, the HRA will be adjusted based on the increase in DA. The new HRA rates are expected to be:
- Category X cities: 30% of basic salary
- Category Y cities: 20% of basic salary
- Z-category cities: 10% of basic salary
- Calculation example: For an employee with a basic salary of Rs 35,000:
- X-City: Rs 10,500
- Y-City: Rs 7,000
- Z-City: Rs 3,500
Other allowances
Apart from HRA, several other allowances are expected to increase with the increase in DA:
- children’s education allowance
- Special child care allowance
- Dormitory subsidy
- Transfer transportation allowance
- Tip cap
- Dress allowance
- Self-driving transportation mileage subsidy
- daily allowance
These allowances are linked to DA and may increase proportionately as DA rises (usually around 25%) to help employees cope with inflation and rising cost of living
In short, the establishment of the Eighth Pay Commission is a landmark step to ensure that the financial needs of India’s over 1.2 billion central government employees and pensioners are met and that their remuneration remains fair and timely.
Source: https://dinhtienhoang.edu.vn
Category: Optical Illusion