7th vs 8th Payment Commission: Key Salaris, Allowance, Pension and Incentive Change Explanation

The central government approved the Constitution of the 8th Payment Commission in January this year and watched a significant step in the compensation structure for employees and pensioners in the central government. The new payment commission is set before the end of the current 7th Payment Commission, which ends in December 2025. Since 1947, the government has compiled seven payment commissions. The Payment Commission plays a key role in the decision of salary structures, benefits and grants for government employees. Most organizations owned by the state follow the commission’s recommendations. Here are some of the main differences between the 7th and 8th pay commissions. 7th Payment Commission: Important Highlights The 7th Payment Commission was established in 2014, and its recommendations were implemented from 1 January 2016. This has made several changes. That was: Minimum payment: The minimum basic payment of central government employees was increased from £ 7,000 to £ 18,000 per month. Passing factor: It refers to the multiplier used to calculate the salaries of employees moving from an old pay structure to a new one. In the 7th Payment Commission it was set at 2.57, which means that the basic payment was multiplied by 2.57 to calculate new salaries. Allowance: The 7th Payment Commission has set up reviews to key allowances such as DeesSness Choansance (DA), Home Rental (HRA) and Transportation allowance (TA). These awards were determined after taking into account the prevailing economic conditions and inflation trends. Pension: Minimum pension rose from £ 3.500 to £ 9,000 a month. Payment Structure: The 7th Payment Commission has set a simplified 19 level payment matrix to increase transparency in the pay structure. It was like a single graph showing salaries for all central government employees. 8th Payment Commission: What to expect announced by Union Electronics and IT Minister Ashwini Vaishnaw, the 8th Payment Commission is likely to be established by January 2026. The most important expectations include: Salary increase: Among the 8th Payment Commission, proposals make a major increase in the minimum basic payment, which is possibly £ 34,500 – £ 41,000 per month. Adjustment factor: The pace factor can also rise to 2.86, which will facilitate larger hikes across different levels of government positions. Allowance: An overall overview of grants such as DA, HRA and TA is expected to reflect the current inflation rate and economic conditions of the country. Pension: The 8th Payment Commission can also improve the process of payment of pensions. The center will take essential steps to ensure timely payout and adjustments in line with the new payment structures. Performance -based incentives: Discussions are underway to introduce productivity -linked incentives or additional payment to reward employees with high performance. More than 49 lakh employees of the central government and nearly 65 lakh pensioners will benefit from the implementation of the 8th Payment Commission.