Latest news with #PayCommission
News18
a day ago
- Business
- News18
8th Pay Commission: Centre Expedites Process, But Salary Hike May Be Lower Than Expected
The Central government is speeding up the 8th Pay Commission process, consulting key stakeholders. But a new report dashes employees' hopes for a higher revision of salary. 8th Pay Commission Update: After an unexpected delay in the constitution of the 8th Pay Commission since the announcement in January 2025, the Central government has geared up to expedite the process by taking consultations with key stakeholders including states, the Ministry of Defence, the Ministry of Home Affairs, and the Department of Personnel and Training, as informed by the Finance Ministry in the Parliament on Monday. However, a new report has dashed the employees' hopes for a higher revision of salary, stating a lower salary hike in the upcoming 8th Pay Commission than the 7th Pay Commission. Over 1 crore central government employees and pensioners have long been awaiting the update on the 8th Pay Commission since the announcement. The next pay revision is expected to become effective from January 2026. Minister of State for Finance Pankaj Chaudhary in a written reply to the Lok Sabha said inputs have been sought from major stakeholders. He added that the chairperson and members of the 8th CPC will be appointed once the commission is formally notified by the government. Every 10 year the government revises the basic salary of its employees and pensions of pensioners in align with the rising cost of living and other expenses. In the moment of delight with the process of the constitution of the 8th pay commission is moving forward after a delay, a report dashes their high hopes of expecting a sharp salary hike. A Financial report citing Kotak Institutional Equities states that employees may receive a lower salary hike of 13 per cent under the upcoming 8th Pay Commission as compared to a salary hike of 14.3 per cent offered under the 7th Pay Commission. The report added that the fitment factor could be fixed at 1.8 for the upcoming 8th Pay Commission, in comparison to 2.57 per cent during the 7th Pay Commission. This means the total salary hike on the basic pay would be lower than the previous one. The fitment factor is a multiplier used by the government to revise the basic salary of employees when a new Pay Commission is implemented. It helps determine the new pay by applying the factor to the existing basic salary. For example, if an employee's current basic salary is Rs 18,000 and the fitment factor is 2.0 (just for example), the revised basic salary would be Rs 32,400 (Rs 18,000 × 1.8). This does not include allowances like HRA or DA, which are calculated separately and increase overall take-home pay further. The dearness allowance (DA), currently at 55%, will be reset to zero once the new pay structure is implemented. The FE report said that while a jump in basic pay appears substantial on paper, the real hike will depend heavily on how the new DA structure is phased in after the reset. Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
India.com
a day ago
- Business
- India.com
8th Pay Commission: 7th CPC Pay Hike Was Lowest Since 1970, 8th CPC Salary Hike To Be Even Lower? Reports Hint At...
photoDetails english 2935494 Updated:Jul 23, 2025, 08:56 AM IST 8th Pay Commission Expected Salary Hike 1 / 10 The 8th Pay Commission is expected to recommend a subtle salary and pension hike for central government employees, which could be lower than the pay hike announced under the 7th Pay Commission. According to a report by Kotak Institutional Equities, central government employees may receive an effective salary hike of 13% vis-a-vis pay hike of 14.3 percent under 7th Pay Commission. The 7th Pay Commission (January 2016 - December 2025) had implemented a modest salary hike, which was lowest since 1970. 8th Pay Commission: Expected Fitment Factor 2 / 10 The fitment factor could be set at 1.8 percent under 8th Pay Commission, lower than the 2.7 perecent fitment factor announced under the 7th Pay Commission. Although the 1.8 fitment factor translates into 80% hike in basic pay (current basic pay multiplied by 1.8% fitment factor, the effective hike could go up by only 13% because the dearness allowance (DA) --which is currently at 55 percent --will be reset to zero once the new pay structure is implemented under the 8th Pay Commission. 8th Pay Commission: FinMin Response In Lok Sabha 3 / 10 The Finance Ministry recently responded to questions pertaining to 8th Central Pay Commission (CPC) in Lok Sabha. The response by Minister of State in the Ministry of Finance Pankaj Chaudhary on July 21, 2025 touched upon the questions posed by Members of Parliament, TR Baalu and Anand Bhadauria, regarding updates on formation of the pay panel; appointment of Chairperson and other members; Terms of Reference; and implementation of new pay scales. Constitution And Timeline Of 8th Pay Commission 4 / 10 On Constitution of 8th Pay Commission Minister of State in the Ministry of Finance Pankaj Chaudhary replied Lok Sabha: It has been decided by the government to constitute the 8th Central Pay Commission (CPC). Inputs have been sought from major stakeholders, including Ministry of Defence, Ministry of Home Affairs, Department of Personnel & Training and from states. On timeline of members, chairperson appointment she said: The chairperson and members of the 8th CPC would be appointed once the 8th CPC is notified by the Government. 8th Pay Commission Implementation 5 / 10 On implementation of 8th Pay Commission Chaudhary said: Implementation would be taken up once the recommendations are made by the 8th CPC and are accepted by the government. 8th Pay Commission For Salary Pension, Allowance Revision 6 / 10 The 8th Pay Commission will revise the pensions, allowances and salaries of central government employees and pensioners. It will also revise the Dearness Allowance as per inflation. The 8th Pay Commission benefits about 50 lakh central government employees, including defence personnel. It will also benefit around 65 lakh central government pensioners, including defence retirees. 8th Pay Commission: January 2026 Implementation Prospects Bleak 7 / 10 The prospects for the Commission's implementation on January 1, 2026, appear bleak. While the tenure of the 7th Pay Commission ends on 31 December 2025 and the constitution of the new Commission is in limbo, the central government employees and pensioners are increasingly becoming anxious. 8th Pay Commission Tor Delay Causes Anxiety 8 / 10 According to the Staff Side, the continued delay in the formal issuance of the ToRs has led to widespread speculation and uncertainty among central government employees and pensioners. It further stated that in the absence of clear and timely communication, apprehensions are growing among employees about the credibility of the announcement regarding the setting up of the 8th CPC. Many fear whether this move is a genuine administrative initiative or otherwise. ToR, Chairman Appointment: 7th Pay Commission Vs 8th Pay Commission Timeline Compared 9 / 10 The 7th CPC was announced in September 2013 and its chairman and ToR were notified in February 2014. However, since the announcement of the 8th Pay Commission on January 16, 2025, the ToR of the Commission are still pending. The government has also not officially announced the appointment of the chairman and other members of the commission. This indicates a delay in the formation of the 8th CPC. Pay Commission In Every 10 Years 10 / 10 The Central Pay Commissions are normally established once every ten years to review and recommend changes to pay scales, allowances and benefits for central government employees. Implemented in 2016, the 7th Pay Commission will remain in effect till 2026. More than one crore central government employees and pensioners are looking forward to the formation of the 8th Pay Commission, which will revise their basic pay, allowances and pension.
Mint
6 days ago
- Business
- Mint
Expert view on Indian stock market: Market valuations stretched, but outlook remains bright, says Mayur Patel of 360 ONE
Expert view on Indian stock market: Mayur Patel, President and Fund Manager- Listed Equity, 360 ONE Asset, is positive about the Indian stock market for the long term, even as he points out that the current valuation is stretched. In an interview with Mint, Patel underscored that while near-term corrections can't be ruled out, India's fundamental story remains strong and is an 'add-on dips' story. Here are edited excerpts of the interview: While Q1 earnings remain weak, the outlook is actually encouraging. Consumer demand is poised to rebound after a prolonged slowdown. Tax reliefs, interest rate cuts, and enhanced liquidity amid cooling inflation should help revive consumption. Credit growth, currently subdued, is also expected to pick up with a lag. So, earnings trends are not the primary concern. The bigger overhang is uncertainty around US tariffs. The announcements so far are aggressive — 20–35 per cent tariffs on a range of countries are clearly negative for global trade. This raises risks of higher inflation and an economic slowdown in the US. It could also disrupt global trade, delay corporate investment decisions, and increase equity risk premiums. For India, the direct long-term impact of US tariffs is limited — merchandise exports to the US are just 2 per cent of Indian GDP, with services adding another few percentage points. However, in the short term, higher tariffs on Indian exports (if finalised) could dampen market sentiment. Interestingly, India might actually benefit over the longer term from the 'China+1' strategy, especially if Indian tariffs remain lower than those on other competing economies. We don't try to predict short-term market movements. That said, we are a bit cautious in the near term. Valuations are above average, and there's a lot of global uncertainty in the mix, whether it's US tariffs or geopolitical tensions. Trying to call near-term market movements is rarely productive. Markets are complex, and short-term movements often have more noise than signal. That said, there's no denying valuations are stretched. The Sensex P/B, which had corrected from 4.25 times in September'24 to 3.76 times in Q1, is back at 4.5 times — well above the long-term mean of 3.2 times. So yes, some volatility or even a correction is certainly possible, especially with risks like US trade policy or oil price shocks from the Middle East. But if we step back, India's domestic macro picture is solid. Growth is improving, inflation is coming down, the RBI has front-loaded rate cuts and even announced CRR cuts — all pro-growth signals. Discretionary consumption is also set to revive with the ₹ 1 trillion tax relief and upcoming Pay Commission hikes. So while near-term corrections can't be ruled out, India's fundamental story is strong. Think of it like a high-quality, high-growth stock that looks pricey today but offers long-term value — it's really an 'add-on-dips' story. We're clearly in a market where bottom-up stock selection matters far more than top-down positioning. Market internals would matter more than market timing. Key portfolio construction thoughts: (i) Growth leadership is shifting from government-led capex to consumer discretionary spending. (ii) After a strong run, value as a factor may underperform, with quality and growth factors likely to come back in favour, helped by urban consumption stimulus and a supportive rate/liquidity backdrop. (iii) Export-driven sectors are vulnerable to earnings downgrades amid global uncertainties. (iv) Prefer domestic demand-driven stories over those heavily reliant on global macros. Over the last five years, government capex grew from ₹ 3.4 trillion to ₹ 11 trillion — an impressive 27 per cent CAGR, which really helped capex-linked sectors and value stocks. Looking ahead, we're seeing the government's focus shift toward reviving consumption and encouraging private capex while controlling the fiscal deficit, with government capex growth likely to moderate. This sets the stage for a potential comeback in the growth and quality segments of the market. Coming to specific areas of preference with a slightly longer-term view, we do see robust growth prospects in the following sectors: (i) Manufacturing: Renewables, electronics, semiconductors, etc. (ii) Consumer discretionary: Benefiting from fiscal incentives and potential pay commission-related hikes. (iii) Power sector: Opportunities, especially in transmission and distribution. (iv) Auto EV plays: Positioned for sustained growth driven by rising penetration of EVs. (v) Quick commerce: Emerging space with significant growth potential. (vi) Pharma CDMO: Leveraging India's global competitive advantage. (vii) Telecom: Sector attractiveness enhanced by industry consolidation. (viii) High-quality NBFCs: Consistent growth leaders. (ix) Private banks: Offering attractive valuations and stable growth. At current valuation levels, it's important to keep short-term return expectations modest, and instead focus on systematic, long-term investing. Historically, as investors stretch their horizon from one year to five years, volatility in returns — as measured by standard deviation—reduces significantly, and the risk-reward ratio improves. If we look past short-term volatility, we feel good about H2. Consumption should recover, credit growth is likely to pick up, and lower rates will support overall growth. Also, with market ROEs of around 15%, each passing year naturally compresses P/B multiples, improving the long-term risk-reward balance. In short, the cyclical rebound in discretionary consumption and the steady rise of manufacturing are India's two big growth drivers in the coming years. So, have some appetite for short-term volatility and invest systematically in this structural growth story. Read all market-related news here Read more stories by Nishant Kumar Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
NDTV
16-07-2025
- Business
- NDTV
8th Pay Commission: Your Complete Guide To The Expected 30-34% Salary Hike For Govt Employees
Central government employees and pensioners across India are eagerly awaiting developments regarding the 8th Pay Commission, which is set to revise their salaries and pensions significantly. A recent report by Ambit Capital has intensified this anticipation, estimating a substantial 30-34% hike in remuneration. If implemented as projected, this revised pay structure is likely to come into effect in 2026 or the financial year 2027, potentially placing an additional burden of approximately Rs 1.8 lakh crore on the government exchequer. Every decade, a commission is constituted to review and revise pay structures for central government employees and pensioners, including defence personnel and retirees; the current structure, based on the 7th Pay Commission, came into effect in January 2016. Analysts expect the 8th Pay Commission to revise the basic pay scale for central government employees, ensure the dearness allowance is in alignment with inflation, and also ensure pension revisions are in line with the new pay structures. The fitment factor is a multiplier used to revise the basic pay of government employees. While initial estimates are being acknowledged for that as well, the aim is to ensure more equitable compensation across roles. The fitment factor is likely to be in the range of 1.83 to 2.46 as per Ambit Capital's report. As per the brokerage's estimated fitment factor range of 1.83-2.46, the minimum pay could increase in the range of Rs 32,940 to Rs 44,280. This calculation is based on the fact that the basic salary is multiplied by the fitment factor to determine the revised wage. Fitment factor is basically what is multiplied by the existing basic pay to calculate the new basic salary under the Pay Commission. If multiplied by 1.83 - the lower end of the fitment factor range shared by Ambit Capital - the minimum salary could rise to Rs 32,940 (Rs 18,000 x 1.83). At the upper end of the estimated range, the minimum salary could surge to Rs 44,280 (Rs 18,000 x 2.46). Similarly, a base salary of Rs 50,000 can rise to Rs 91,500 at the lower end of the fitment factor and Rs 1.23 lakh at the upper end. The next pay revision is expected to be a game-changer, not only for government employees but for the Indian economy as well, as rising take-home pay boosts consumption, housing quality, healthcare access, leisure activities and overall growth.
India.com
15-07-2025
- Business
- India.com
8th Pay Commission: Why Timelines Of 6th And 7th Pay Commissions Is Giving Jitters To Central Govt Employees?
photoDetails english 2931968 Updated:Jul 15, 2025, 08:51 AM IST 8th Pay Commission: ToR, Chairman Appointment Awaited 1 / 8 More than 1.2 crore central government employees and pensioners are eagerly awaiting the formation of the 8th Pay Commission which will revise their salaries and pensions. The Staff Side has appealed to the government to issue clear guidelines on the finalized ToRs of the 8th CPC at the earliest, to dispel any ambiguity and restore confidence among the workforce. The Staff Side further requested the government to clarify that the benefits of pay fixation and revision under the 8th CPC shall also be extended to all central government pensioners, thereby removing doubts and ensuring parity and fairness in treatment. 8th Pay Commission: Timelines Of 6th, 7th CPC Giving Jitters 2 / 8 Despite the government's approval on January 16, 2025, the Pay Commission has not been formally constituted. The ToR and the appointment of the chairman and other important members have also not yet been completed. The anxiety of central government employee is further accentuated by the past comparisons of timelines of 6th and 7th Pay Commissions. 7th Pay Commission Vs 8th Pay Commission Delay? 3 / 8 The 7th CPC was announced in September 2013 and its chairman and ToR were notified in February 2014. However, since the announcement of the 8th Pay Commission on January 16, 2025, the ToR of the Commission are still pending. The government has also not officially announced the appointment of the chairman and other members of the commission. This indicates a delay in the formation of the 8th CPC. 6th Pay Commission Vs 8th Pay Commission Delay? 4 / 8 6th Pay Commission was formed in October 2006. The report/recommendation was sent in March 2008 and it got approval in August 2008. The Implementation of 6th pay commission was from January 1, 2006 retrospectively. 8th Pay Commission: 1 January 2026 Expected Implementation 5 / 8 The prospects for the Commission's implementation on January 1, 2026, appear bleak. While the tenure of the 7th Pay Commission ends on 31 December 2025 and the constitution of the new Commission is in limbo. Now, comparing the timeline of 6th and the 7th pay commission the central government employees and pensioners are increasingly becoming anxious since there is no official word yet on the set up of pay panel. 8th Pay Commission: 3rd Extension Of Filling Up Of 4 Posts Of Under Secretary 6 / 8 In its latest circular, issued on 3 July 2025, DoPT has decided to extend the last date for submission of applications till 31.07.2025. This is the third extension that DoPT has proposed, thus possibly meaning that the applications from eligible candidates for these key posts in the pay panel has yet not been received yet. 8th Pay Commission: Under Secretary Post Previous Extensions 7 / 8 Earlier it DoPT had proposed to fill up the 4 posts of Under Secretary (Level 11) in the 8th Central Pay Commission (CPC) on deputation basis under the Central Staffing Scheme under D/o Expenditure. The applications were invited for the post vide circular of even number dated 22.04.2025. 8th Pay Commission: Pay, Pension Revision In Offing 8 / 8 The 8th Pay Commission will revise the pensions, allowances and salaries of central government employees and pensioners. It will also revise the Dearness Allowance as per inflation. The 8th Pay Commission benefits about 50 lakh central government employees, including defence personnel. It will also benefit around 65 lakh central government pensioners, including defence retirees.
