The 8th Pay Commission has been approved by the Indian Government which is a huge relief for over 1 crore employees of the Indian government and pensioners. Their salary will increase under this decision, but the method of increasing the salary is different this time. Let’s know the formula of this new pay commission and how this can increase the salary of the employees.
Who Will Benefit From The 8th Pay Commission?
Central employees and pensioners benefit from this newly constituted Pay Commission. The salaries and allowances of employees are going to be raised, which will positively improve their financial state. The one question that is answered through this is-how much increment might be announced for salary? For this, the government has prepared a new formula under which all employees from levels 1 to 10 will benefit.
Salary improved With Akroyd Formula
Government salaries usually increase by means of Dr. Wallace Akroyd’s formula. This formula is based on basic necessities like food, clothing, and housing, and deals with salary increases. This was implemented in the Indian Labor Conference in 1957 and is held to date as the basis for salary determination.
What Was In 7th Pay Commission?
The same formula would be used for calculation in the 7th Pay Commission. Here, the minimum basic for the central employee was raised from Rs. 7,000 to Rs. 18,000. It is expected that this time as well the pay hike will be done on the Acroyd formula due to which the employees can get a very nice increment.
Date Of Implementation Of 8th Pay Commission.
The streak is currently being taken along the lines of believing that January 1, 2026, might see the light of the 8th Pay commission. However, the government has not made any official announcement in this regard, but it is “said” to take a decision on it very soon.
Change In Other Allowances
The increased basic salary may be evaluated and enhanced with other allowances like Dearness Allowance (DA), Travel Allowance (TA), and Housing Rent Allowances (HRA). It is projected that the government will raise these allowances according to the new base salary as in the case of employees.
Increase In Purchasing Power Of Government Employees
If salary increases, employee purchasing power will also increase. This will enable them to spend more, which would also be beneficial to the economy.
Private Sector Impact
The increase in salary of government employees may affect private sector companies as well. Many such companies would revise the salaries of their employees to keep their talented team intact.
What Do Employees Need To Do?
There has been no official mention regarding the 8th Pay Commission till now. Employees should keep their financial planning ready. In case salary is increased, it is very important to use it properly and keep a focus on savings and investments.
Also Read: Pension New Rules 2025: The Biggest Change In The Pension Rules, know The Guidelines