New Delhi: The median salary of the Union government employees can rise in the range of Rs 14,000 to Rs 19,000 per month after the implementation of 8th Pay Commission, Goldman Sachs said on Monday.

An estimated 50 lakh government employees and 65 lakh pensioners will benefit from the implementation of the 8th Pay Commission. The panel is expected to be formed in April and its report likely to be implemented in 2026 or 2027, the financial services firm said in a note.

Goldman Sachs ran a broad-scenario analysis for the central-government-employee cohort, which is presently earning a median monthly salary (pre-tax) of Rs 1 lakh. "While only for illustrative purposes, this analysis suggests the cohort could benefit by an additional Rs 14,000 to Rs 19,000 per month."

As part of its analysis, Goldman Sachs assumed three scenarios. If the Centre allocates Rs 1.75 lakh crore for the implementation of 8th Pay Commission — and assuming that 50% of that allocation is used for the revision of salaries and the remainder for pensions — then the median salary can rise from Rs 1 lakh to Rs 1,14,600 per month, it said.

If the government allocates a budget of Rs 2 lakh crore, then the median salary can rise from Rs 1 lakh to Rs 1,16,700 per month. The same could rise to Rs 1,18,800 per month if the allocation for 8th Pay Commission's implementation is Rs 2.25 lakh crore.