By Sid Bhaiya
The Indian government, led by Prime Minister Narendra Modi, has approved the formation of the 8th Pay Commission to revise salaries, allowances, and pensions of central government employees and pensioners. Announced by Union Minister Ashwini Vaishnaw, this decision comes ahead of the Union Budget 2025-26 and aims to enhance employee welfare and economic growth.
The 8th Pay Commission is expected to address inflation and align compensation with current economic realities.
The 7th Pay Commission, implemented in 2016, will end in 2025. The 8th Pay Commission is expected to be implemented from January 1, 2026, ensuring continuity in government compensation structures.
| Category | 7th Pay Commission | 8th Pay Commission (Expected) |
|---|---|---|
| Year of Implementation | January 1, 2016 | January 1, 2026 (Likely) |
| Chairperson | Justice A.K. Mathur | Yet to be announced |
| Fitment Factor | 2.57 | 3.68 (Speculated) |
| Pay Structure | Pay Matrix (No Pay Bands) | Revised Pay Matrix |
| Minimum Basic Pay | ₹18,000 | ₹26,000–₹49,000 (Expected) |
| Maximum Basic Pay | ₹2,50,000 | Likely to exceed ₹2,50,000 |
| Salary Hike (Approx.) | 23–30% | 45–50% |
| Dearness Allowance (DA) | Started at 0%, revised every 6 months | Likely to follow the same pattern |
| Gratuity | ₹20 lakh cap | Likely to increase to ₹25–30 lakh |
| Pension | Based on last drawn salary | Likely similar to 7th Pay Commission |
| Major Allowances | Revised HRA, Transport, Other Allowances | Likely further enhancement |
| Performance-Based Pay | Recommendations made but not implemented | May be implemented (Speculated) |
| Inflation Adjustment | Better adjustment via revised Pay Matrix | Expected to address current inflation |
Let's assume the officer is at Level 10 in the pay matrix, and the following parameters are considered:
| Basic Pay | ₹56,100 |
| DA (30%) | ₹16,830 |
| HRA (24% for Class X city) | ₹13,464 |
| Transport Allowance (Metro city) | ₹3,600 |
| Special Allowances | ₹2,000 |
| Total | ₹92,994 |
From the gross salary, the following deductions are made:
After deductions, the net salary for an SDM at the entry level is approximately ₹70,000–₹75,000 per month, depending on location and allowances.
