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India.com
3 days ago
- Business
- India.com
7th Pay Commission Last Hike: Good news for Govt employees on final increment! DA, DR will be credited in account by…
7th Pay Commission Big Update Although many government employees are awaiting 8th Pay commission formation, there is an update on 7th Pay commission DA hike. According to media reports, the final hike in Dearness Allowance (DA) and Dearness Relief (DR) for July 2025 is expected to be announced soon. This revision will be effective from July and is likely to be credited into bank accounts by October just ahead of the festive season. 7th Pay Commission Salary Hike Around 1 crore beneficiaries including 33 lakh employees and 66 lakh pensioners are eagerly awaiting this final revision under the 7th Central Pay Commission (CPC). The 7th CPC was implemented in January 2016 and is set to conclude in December 2025. In March this year, the government had raised DA by 2%, taking it from 53% to 55% of basic salary, effective January 2025. The primary purpose of these adjustments is to offset the impact of inflation, making DA a critical component of government employees' salaries. After this final DA hike, focus will shift to the 8th Pay Commission, which is expected to come into force from January 2026. Typically, when a new pay commission is implemented, the DA is reset to zero because the inflation index baseline changes. For example, before the implementation of the 7th CPC in 2016, DA had reached 125% of basic pay. According to Ambit Capital, if the DA reaches 60% before the 7th CPC ends, the new pay structure can give a salary increase of around 14%. However, this would be the slowest growth compared to the last four pay commissions. What Can Employees Expect? DA hikes are calculated based on the Consumer Price Index for Industrial Workers (CPI-IW), which tracks monthly retail price changes in a fixed basket of goods and services. The formula used under the 7th Pay Commission is: DA (%) = [{12-month average of AICPI-IW (base year 2001) – 261.42} / 261.42] x 100 In March 2025, the government raised DA by 2%, bringing it to 55%, effective from January 2025. These revisions are designed to ease the inflationary burden on employees, making DA a vital part of their compensation.
Time of India
6 days ago
- Business
- Time of India
Why 8th Pay Commission may end up disappointing government employees and pensioners
Central government employees and pensioners who are anticipating substantial salary and pension hikes from the 8th Pay Commission may face some disappointment. Some reports suggest that the upcoming commission may fix a lower fitment factor of around 1.8, potentially resulting in only a 13% real pay increase, much lower than what was caused by previous pay commissions. Tired of too many ads? Remove Ads What is a fitment factor? How does it impact salary and pension hikes? Tired of too many ads? Remove Ads It is this fitment factor that, if set low, could disappoint central government employees and pensioners. According to Kunal Sharma, Founder & Managing Partner, Taraksh Lawyers & Consultants, it may also invite some legal scrutiny What makes up a central government employee's salary? First is the basic pay, which is the core component of one's salary, on which the fitment factor is applied. DA, or Dearness Allowance, is a bi-annual adjustment announced by the government to help employees mitigate the impact of inflation on their overall earnings. This is revised every year in January and July. Following the January 2025 announcement, the DA presently stands at 55% of basic pay. So, assuming that an employee's basic pay is Rs 20,000 per month, their DA would come to Rs 11,000. A percentage of basic pay is also marked for HRA (Housing Rent Allowance) to cover rental expenses, and transport allowance, which is a fixed amount depending on your pay scale and the city you live in. Tired of too many ads? Remove Ads Pay Commission % hike in real pay (change in basic pay, Dearness Allowance 2nd Pay Commission 14.2 3rd Pay Commission 20.6 4th Pay Commission 27.6 5th Pay Commission 31 6th Pay Commission 54 7th Pay Commission 14.3 When is the 8th Pay Commission likely to be implemented? Over 33 lakh Indian central government employees and more than 66 lakh pensioners, eagerly waiting for the implementation of the 8th Pay Commission , may be in for some disappointment if they are expecting a substantial hike in their salaries and why is that? A recent report from Kotak Institutional Equities suggests that the fitment factor for the 8th Pay Commission could be as low as 1.8, resulting in only around a 13% hike in real reference, a prior report from Ambit Capital noted that the current 7th Pay Commission, which will conclude in December 2025, resulted in a 14.3% salary boost effective from 2016, not including allowances, which was still higher than what is being anticipated for the upcoming 8th Pay reading to understand why the 8th Pay Commission may not lead to a significant salary increase for central government employees and pensioners, as well as when it is likely to be report by Kotak Institutional Equities titled '8th Pay Commission: One-time boost… some time away' expects a fitment factor of around 1.8. The actual hike in a central government employee's salary or pensions depends entirely on this 'fitment factor' or multiplier, as recommended by the fitment factor is used to calculate an employee's new basic pay based on their current basic pay. For example, the 7th Pay Commission had set a fitment factor of 2.57, raising the monthly minimum basic pay for central government employees from Rs 7,000 to Rs 18, it's important to understand that a fitment factor of 2.57 does not mean the total salary gets a 2.57x boost. This fitment factor is applied solely to the basic pay, thereby increasing it.'Employee unions, particularly the staff side of the National Council-JCM, have formally opposed the proposed reduction, asserting that such a move would be inequitable and demoralizing, especially in the context of rising inflation and cost of living', he says.'The principle of non-retrogression in administrative law implies that benefits once conferred should not be arbitrarily reduced. A lower fitment factor may be construed as a regressive policy shift, potentially inviting judicial scrutiny. While the 8th CPC is yet to be formally constituted, the preliminary reports suggest a disappointing trajectory for central government employees", he further are 4 components of a central government employee's salary:According to Ambit Capital's report, as soon as a pay commission ends, the dearness allowance (DA) becomes zero as the index is re-based. Going by this, the DA will be merged with basic pay and reset to 0 under the 8th Pay Commission.'To determine the percentage of dearness allowance/dearness relief immediately to be merged with pay & pension' has also been stated as one of the terms of reference submitted by the National Council of Joint Consultative Machinery (NCJCM) to the not everyone agrees with this conservative estimation. Utsav Trivedi, Partner, TAS Law, remains optimistic.'The 8th Pay Commission is expected to deliver a substantial salary increase for central government employees, with a fitment factor ranging between 2.6 to 2.86. This revision, likely to be implemented by January 2026, could lead to a 40-50% increase in salaries and pensions. This significant change will benefit 4.9 million central government employees and around 6.5 million pensioners, including the defense personnel. With a projected fitment factor of up to 2.86, 40-50% salary hikes are expected after implementing the 8th Pay Commission'.The process began in January 2025, with the announcement of the 8th Central Pay Commission, but there has been no progress in appointing its chairman and defining its terms of reference. 'The usual process would be to constitute the CPC, which will then deliberate with central and state government officials, representatives of employee organizations and pensioners, experts, etc. After the consultations, the CPC will submit its report and recommendations to the government. The government will seek Cabinet approval to implement the recommendations', says the Kotak the delay, the 8th Pay Commission's recommendations will be effective from January 2026. Hence, the greater the delay in implementing the recommendations, the higher the arrear payouts for central government employees and pensioners will be.
Reuters
21-07-2025
- Business
- Reuters
Higher prices help India's UltraTech Cement beat quarterly earnings view
July 21 (Reuters) - UltraTech Cement ( opens new tab, India's largest cement-maker by capacity, posted first-quarter earnings above market expectations on Monday, boosted by higher prices of the construction material. The company's consolidated net profit, including gains from its acquisition of India Cements ( opens new tab, stood at 22.26 billion rupees ($258.11 million) for the quarter ended June 30. Analysts, on average, estimated 21.56 billion rupees, according to data compiled by LSEG. On a standalone basis, net profit rose 48% year-on-year. Cement prices rose about 2% on-year on average in the quarter, according to brokerage Ambit Capital, extending the steady recovery so far this year after last year's slump. UltraTech shares, which had hit a record high ahead of results, closed 0.5% higher. The company reported a revenue of 212.75 billion rupees, surpassing analysts' average estimate of 200.12 billion rupees. However, its consolidated sales volume growth of 9.7% was near the lower side of the 9.6%-17.5% growth range projected by four brokerages. Heavy rains dampened demand in Maharashtra, Gujarat and Odisha, while geopolitical tensions stalled construction activity in India's northern border states, the company said. India and Pakistan saw their worst clashes in decades in the quarter, following a deadly attack in Indian Kashmir in April. The April-June period is also a seasonally soft quarter for cement companies, as monsoon showers slow construction. The company's dealmaking, such as the acquisition of India Cements ( opens new tab and Kesoram's cement business, expanded its capacity-generating asset base and as a result, shielded its sales volumes from weather-led volatility, according to analysts. Locked in a fierce race with rival Gautam Adani's cement bets - Ambuja ( opens new tab and ACC ( opens new tab - UltraTech has moved fast to defend its lead, snapping up smaller players in anticipation of an infrastructure boom. ACC and Ambuja are set to report results later this month. ($1 = 86.2425 Indian rupees)
India.com
20-07-2025
- Business
- India.com
8th Pay Commission Important Update: Revised Salary Estimates for Grade Pay 2400, 4200, 4800, 7600, 8700 employees, salary to be…
8th Pay Commission Latest Update 8th Pay Commission Revised Salary Estimates: The Modi government is likely to announce the 8th Pay Commission for the Central government employees and pensioners across India soon. According to a recent report by Ambit Capital, the new pay structure could lead to a 30–34 percent hike in overall remuneration, impacting over 1 crore employees and retirees nationwide. Some of the key allowances that central government employees get are house rent allowance (HRA), transport allowance (TA) and child education allowance (CEA). While their HRA is based on their rank and place of residence, they get their TA as per the place they travel to attend their office. It can be in the range of Rs 900-Rs 7,200. As far as salary deductions are concerned, the National Pension System (NPS) and Central Government Health Scheme (CGHS) are the main ones. While the NPS contribution is 10 percent of the basic pay and CGHS charges range from Rs 250 to Rs 1,000 based on the employee's rank, the 8th Pay Commission could bring changes to basic salary, HRA, TA, as well as NPS and CGHS deductions. Curious about how these revisions may look for employees in Grade Pay levels 2400, 4200, 4800, 7600, and 8700 under 1.92x and 2.57x fitment factors? Check out our projections for a detailed breakdown: At 1.92 fitment factor Revised basic pay: Rs 54,528 HRA: Rs 13,086.72 TA: Rs 3,600 Gross salary: Rs 71,214.72 NPS: Rs 5,452.80 CGHS: Rs 250 Net salary: Rs 65,511.92 At 2.57 fitment factor Revised basic pay: Rs 72,988 HRA: Rs 17,517.12 TA: Rs 3,600 Gross salary: Rs 94,105.12 NPS: Rs 7,298.80 CGHS: Rs 250 Net salary: Rs 86,556.32 At 1.92 fitment factor Revised basic pay: Rs 73,152 HRA: Rs 17,556.48 TA: Rs 3,600 Gross salary: Rs 94,308.48 NPS: Rs 7,315.20 CGHS: Rs 250 Net salary: Rs 86,743.28 At 2.57 fitment factor Revised basic pay: Rs 97,917 HRA: Rs 23,500.08 TA: Rs 3,600 Gross salary: Rs 1,25,017.08 NPS: Rs 9,791.70 CGHS: Rs 250 Net salary: Rs 1,14,975.38 At 1.92 fitment factor Revised basic pay: Rs 1,12,512 HRA: Rs 27,002.88 TA: Rs 3,600 Gross salary: Rs 1,43,114.88 NPS: Rs 11,251.20 CGHS: Rs 650 Net salary:Rs 1,31,213.68 At 2.57 fitment factor Revised basic pay: Rs 1,50,602 HRA: Rs 36,144.48 TA: Rs 3,600 Gross salary: Rs 1,90,346.48 NPS: Rs 15,060.20 CGHS: Rs 650 Net salary: Rs 1,74,636.28 At 1.92 fitment factor Revised basic pay: Rs 1,53,984 HRA: Rs 36,956.16 TA: Rs 7,200 Gross salary: Rs 1,98,140.16 NPS: Rs 15,398.40 CGHS: Rs 650 Net salary: Rs 1,82,091.76 At 2.57 fitment factor Revised basic pay: Rs 2,06,114 HRA: Rs 49,467.36 TA: Rs 7,200 Gross salary: Rs 2,62,781.36 NPS: Rs 20,611.40 CGHS: Rs 650 Net salary: Rs 2,41,519.96 At 1.92 fitment factor Revised basic pay: Rs 1,85,472 HRA: Rs 44,513.28 TA: Rs 7,200 Gross salary: Rs 2,37,185.28 NPS: Rs 18,547.20 CGHS: Rs 650 Net salary: Rs 2,17,988.08 At 2.57 fitment factor Revised basic pay: Rs 2,48,262 HRA: Rs 59,582.88 TA: Rs 7,200 Gross salary: Rs 3,15,044.88 NPS: Rs 24,826.20 CGHS: Rs 650 Net salary: Rs 2,89,568.68 (Disclaimer: These are projections. Actual revised amounts may vary.) Ambit Capital estimates that the fitment factor for the 8th Pay Commission could be in the range of 1.83 to 2.46. This implies that the minimum salary, currently at Rs 18,000, could increase to Rs 32,940 (at 1.83) or even Rs 44,280 (at 2.46).
India.com
17-07-2025
- Business
- India.com
8th Pay Commission update: Will salary of government employees increase three times? Know all details
8th Pay Commission update: Will salary of government employees increase three times? Know all details 8th Pay Commission update: Central employees and pensioners across the country are eagerly waiting for the Eighth Pay Commission. This commission can bring a big change in their salary and pension. According to a recent report, the salary of employees can increase by 30 to 34 percent. But how much your salary will increase when the Eighth Pay Commission will be implemented? Actually, the central government constitutes a pay commission every ten years, which revises the salary and pension of central employees, defense personnel and pensioners on the basis of inflation and economic situation. The Eighth Pay Commission is likely to be implemented in 2026 or FY 2027. How much will the salary increase? Experts believe that this time the salary may increase by 30 to 34 percent, which will put an additional burden of about Rs 1.8 lakh crore on the government treasury. Fitment factor is used for salary revision, which increases the existing basic salary according to the new structure. According to a report by Ambit Capital, the fitment factor is likely to be between 1.83 and 2.46. For example, if the minimum salary is Rs 18,000, it can increase to Rs 44,280 if a 2.46 fitment factor is applied. At the same time, an employee with a salary of Rs 50,000 can get a salary of Rs 1.23 lakh (2.46 fitment) or Rs 91,500 (1.83 fitment). Will DA also increase? Apart from this, the commission can also recommend an increase in dearness allowance (DA) and pension revision. This increase in salary will not only be beneficial for the employees, but it will also give impetus to the Indian economy. People will spend more due to the increased salary, which will increase demand in the market and boost economic growth.
