7th Pay Commission's Decade Ends: What 1.2 Crore Employees Gained & 8th Pay Commission Awaits

• The 7th Central Pay Commission's 10-year tenure concludes on December 31, impacting 1.2 crore central government employees and pensioners.
• Basic salary saw significant jumps: Level 1 from Rs 7,000 to Rs 18,000 (157%), Level 18 from Rs 90,000 to Rs 2.5 lakh (178%), driven by a 2.57 fitment factor.
• Dearness Allowance (DA) reached 58% from zero; tax-free gratuity increased from Rs 20 lakh to Rs 25 lakh (effective Jan 1, 2024) when DA hit 50%.
• A new Unified Pension Scheme (UPS) launched from April 1, 2025, for 23 lakh employees, guaranteeing fixed monthly pension; government NPS contribution increased to 14%.
• Attention now shifts to the 8th Pay Commission, constituted with 18 months to report, promising retrospective benefits upon implementation.

Why It Matters: The 7th Pay Commission's decade-long impact on salaries and pensions concludes, setting the stage for the 8th Pay Commission.