Raise in allowances and pay commission payments set to boost government employees and pensioners' income during the festive period; salaries are expected to rise to up to Rupees...
The Indian government is expected to announce a 3% hike in Dearness Allowance (DA) for central government employees and pensioners, a move that could significantly impact over 1.2 crore individuals. This increase, if implemented, will raise the current DA standing at 55% of basic pay to 58%.
The hike in DA is anticipated to occur ahead of Diwali, bringing cheer to more than 50 lakh employees and 65 lakh pensioners. This decision follows the revision of the DA twice a year based on the Consumer Price Index (CPI).
The 3% hike in DA forms part of the benefits under the 8th Pay Commission, which is expected to take effect from January 1, 2026. The 8th Pay Commission, if implemented, could overhaul the current structure of salaries and pensions for government employees, potentially leading to a substantial increase in minimum basic salary and minimum pensions.
Under the 8th Pay Commission, minimum basic salary may rise from Rs 18,000 to Rs 51,480, while minimum pensions may go up from Rs 9,000 to Rs 25,740. The fitment factor, a crucial component of the 7th Pay Commission, may also increase from 2.57 to 2.86 in the 8th Pay Commission.
The 8th Pay Commission, often referred to as the 8th Central Pay Commission (CPC), has not been explicitly mentioned in the context of the article. However, it is expected that the government will bring the 8th CPC, which could potentially bring about a significant change in the current structure of salaries and pensions from 2026.
It is important to note that the 8th Pay Commission, as well as the Diwali-related DA hike, are yet to be officially confirmed by the Indian government. Nonetheless, the anticipation of these changes has sparked optimism among government employees and pensioners, offering a promising outlook for the future.
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