The 8th Pay Commission in India is set to address salary revisions for central government employees, with potential impacts on both active staff and pensioners. Despite initial expectations of implementation by January 2026, delays in forming the commission and bureaucratic processes may push the timeline further into 2027. The proposed changes aim to balance welfare spending, fiscal targets, and the need for fair compensation adjustments.
Key aspects include the potential fitment factor range of 1.83-2.46, which would affect basic pay components, while dearness allowance (DA) may be reset to zero. The Unified Pension Scheme (UPS) also plays a role, guaranteeing 50% of the last drawn salary for pensions starting FY26. However, the delayed formation of the commission and fiscal constraints pose challenges to timely implementation.
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