New Delhi, March 25: Central government employees may receive a salary hike ranging from Rs 14,000 to Rs 19,000 per month under the upcoming 8th Pay Commission, according to a report by Goldman Sachs released on Tuesday.
The financial services firm estimates that the salary revision will benefit around 50 lakh central government employees and 65 lakh pensioners. The formation of the 8th Pay Commission is expected to take place in April, with its recommendations potentially implemented by 2026 or 2027.
Goldman Sachs based its projections on various budget allocations. Currently, the median monthly salary of a central government employee is Rs 1 lakh before taxes. Depending on the government’s budget allocation, the following salary increases are anticipated:
With an allocation of Rs 1.75 lakh crore, half of which will go toward salary revisions and the other half for pensions, the median salary could rise to Rs 1,14,600 per month.
If Rs 2 lakh crore is allocated, salaries may increase to Rs 1,16,700 per month.
In the case of a Rs 2.25 lakh crore allocation, the median salary could reach Rs 1,18,800 per month.
The 7th Pay Commission, which was implemented in 2016, cost the government Rs 1.02 lakh crore. Although the revised salaries and pensions were applied retroactively from January 2016, they were officially rolled out in July 2016, impacting the 2016-17 financial year.
