Central employees have been demanding the implementation of the 8th Pay Commission for a long time, which has finally been approved by the Central Government. The Eighth Pay Commission will be implemented in 2026. Let’s understand how much the salary and pension of central employees (Central Govt Employees Salary Hike) may increase after its implementation.

More than 1.2 crore central employees and pensioners will benefit from this decision of the Modi government. After this decision, these employees and pensioners are eagerly waiting for an increase in their salary and pension.

This announcement has made lakhs of families happy, especially those whose members are either working in the Central Government or have retired from service.

On 16th January 2025, Union Minister Ashwini Vaishnaw announced that the government has decided to implement the 8th Pay Commission, and its recommendations will be implemented from January 1, 2026. Until then, employees will continue to receive salary and pension under the 7th Pay Commission.

What is the Unified Pension Scheme (UPS) and When Will It Be Implemented?

The Unified Pension Scheme (UPS) combines key features of both the Old Pension Scheme (OPS) and the New Pension Scheme (NPS). Under UPS, central employees will receive a fixed pension. It will be implemented on April 1, 2025.

Benefits of the Unified Pension Scheme

This scheme will include provisions like family pension, guaranteed pension amount, and a minimum pension for all central government employees.

Under UPS, employees will receive 50% of the average basic salary of the last 12 months as pension after retirement, provided the employee has served the central government for at least 25 years. If an employee has served for just 10 years, their minimum pension will be Rs 10,000 per month. After the employee’s death, 60% of the pension will be given to an eligible family member.

What Will Be the Minimum Pension Under UPS After the 8th Pay Commission?

Let’s look at how much the minimum pension of central government employees under UPS will change after the 8th Pay Commission is implemented. Experts believe that the fitment factor in the 8th Pay Commission could range from 1.92 to 2.86, which would cause the pension to increase from the current Rs 9,000 to Rs 17,280 or Rs 25,740. The fitment factor is a special multiplier used to calculate the salary and pension of government employees. If the fitment factor of 2.86 is applied, pensions and salaries could see an increase of around 186%.

What Will Be the Minimum Salary for Serving Employees Under UPS?

If the fitment factor of 2.86 is applied, the minimum basic salary for government employees will increase from Rs 18,000 to Rs 51,480. Similarly, the minimum pension will increase from Rs 9,000 to Rs 25,740.

Please note that these pension figures are calculated assuming a fitment factor of 2.86. If the fitment factor changes, both the minimum salary and the pension amounts will change accordingly.