8th Pay Commission: Central Govt Employees to See Significant Salary Hike, Lakhs in Accounts!

• Discussions on salary and pension increases for central government employees have begun with the formation of the 8th Central Pay Commission (CPC).
• Inflation protection for employees and pensioners is provided through Dearness Allowance (DA) and Dearness Relief (DR), which are regularly revised.
• Previous Pay Commissions showed varied real salary increases, with the 6th CPC having the highest at 54% and the 7th CPC at 14.3%.
• The 8th CPC is expected to recommend a moderate real pay increase of around 13% after inflation adjustment, slightly lower than the 7th CPC.
• The fitment factor is estimated at 1.8, potentially raising the minimum basic pay from Rs. 18,000 to Rs. 30,000, though real purchasing power gain may be limited due to financial constraints.

Why It Matters: The 8th Pay Commission is set to increase central government employee salaries, but real purchasing power gains may be moderate.