Impact of New Tax Slab on 8th Pay Commission: While presenting the budget on 1 February 2025, the country's Finance Minister Nirmala Sitharaman announced the new tax slab. According to which, now not a single rupee tax will have to be paid on annual income up to Rs 12 lakh.

Apart from this, recently Prime Minister Narendra Modi 's government has approved the 8th Pay Commission, due to which a big increase is expected in the salary of government employees and pensioners. Now the question arises whether the new tax slab announced in the budget will affect the 8th Pay Commission as well. If yes, then what kind of impact will it have? Let us know about it in detail in this news.

First understand the impact of 8th Pay Commission

With the implementation of the 8th Pay Commission, the salary of government employees is expected to increase by up to 108 percent, which will benefit about 1.10 crore central employees and pensioners. According to reports, if the fitment factor is increased from 1.92 to 2.08, then the minimum basic salary can increase from 18,000 to 37,440. At the same time, if the fitment factor increases to 2.86, then this amount can go up to 51,480.

The burden on the government treasury will increase

If reports are to be believed, the way direct tax exemption has been given during the budget and there has been talk of not imposing any tax on annual income up to 12 lakhs, this will put a burden of about one lakh crore rupees on the government treasury. Apart from this, the announcement of the 8th Pay Commission will also put an additional burden of about 2 lakh crores on the government treasury.

Impact of new tax slab on 8th Pay Commission

When any pay commission is implemented, it affects only government employees and pensioners. But, when the government changes the tax slab, it affects the entire population of the country, whether they are in a government job or a private job or doing business. That is, if it is said in the new tax slab that there will be no tax on income up to Rs 12 lakh, then it will be applicable to everyone.

Now let us come to its impact on the 8th Pay Commission. Let us tell you, the 8th Pay Commission will increase the salary and allowances of government employees and if their increased salary goes up to 12 lakhs then they will not have to pay any tax. But, if their salary goes above 12 lakhs then they will have to pay tax as per the new tax slab.