8th Pay Commission: Gratuity may triple for central govt employees after DA hike?
The central government recently approved the formation of the 8th Pay Commission, bringing joy to central government employees. Now, there's more good news: gratuity amounts could increase significantly, potentially reaching up to 12 lakhs!
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The central government has approved the formation of the 8th Pay Commission. This will significantly increase government employees' minimum wages and pensions.
Besides salary increases, employees will receive other benefits, including a potential tripling of gratuity. The 8th Pay Commission will consider rising inflation when determining government employee salaries.
This will benefit 4.9 million central government employees and 6.5 million pensioners. Employees are pleased that the 8th Pay Commission's work has begun before the 7th Pay Commission expires.
The new pay commission is expected to increase the maximum gratuity amount. The maximum gratuity, currently 20 lakhs, could reach 25 or even 30 lakhs after the new pay commission is formed.
For example, a 30-year employee with an Rs 18,000 salary could see gratuity rise from Rs 4.89 lakhs to Rs 12.56 lakhs. Under the 7th Pay Commission, the fitment factor is 2.57, raising the minimum basic salary from Rs 18,000 to Rs 46,620.
The 8th Pay Commission may increase the fitment factor further, potentially setting the minimum basic salary at Rs 51,000. The 8th Pay Commission will impact more than just the minimum wage. Salaries could increase by 25% to 35%, and DA, HRA, and TA will also rise. Pension benefits for retirees are also expected to increase by up to 30%.
