8th Pay Commission News: The setting up of the 8th Pay Commission has completely enamored the central government employees after its formation was approved by PM Narendra Modi’s government. The bigger question is how much of the increment is given to central employees.
Reports say that government employees can expect an increment of 108% in their salaries. However, the official announcement about the salary structure, Dearness Allowance (DA), and fitment factor is yet to come from the government. As per fitment factor calculations, the minimum basic salary for central employees is believed to rise to ₹37,440 from ₹18,000.
Salary Increase by Fitment Factor
The fitment factor has become the main talking point in the 8th Pay Commission. The recommendations by NC-JCM and other organizations place the fitment factor at not less than 2.86. Experts opine that the government may finally set it at a lesser range from 1.92 to 2.08, so very crucial for the determination of the final salary structure for employees.
What would the increase be in salaries of central workers?
Wherever a fitment factor of 2.08 is adopted, that would permit a movement in the minimum basic salary from ₹18,000 to ₹37,440, in the case of pensions increasing from ₹9,000 to ₹18,720. In case the fitment factor witnesses a rise, from its existing position of 2.08 to 2.86, the salaries then would be increased by somewhere near an astronomical 186%, with minimum salary being ₹51,480 and pensions ₹25,740.
For purposes of reference, the 7th Pay Commission came into existence in the year 2014, reported in November 2015, and was implemented in 2016, recommending a hike of salaries and pensions of government employees by 23.5%.
On January 16, Ashwini Vaishnaw, Union Minister, announced the formation of the 8th Pay Commission announced by the Government of India, under the aegis of Prime Minister Narendra Modi. He stated that the 8th Pay Commission would be constituted for the recommendation of pay for all government employees. Since independence, there have been seven pay commissions, the last one implemented in 2016. The tenure of the 7th Pay Commission will end in 2026, while the 8th Pay Commission will be set up in 2025 to prepare new recommendations.
What is a Pay Commission?
The Pay Commission is a commission constituted by the Government of India, every 5 years or so, to review and recommend changes in the salary structure of government employees and public sector employees. The first Pay Commission came up in 1947, just after independence, and since then implementation of such commissions has been in vogue nowadays. Seven Pay Commissions have come along in due course and each has marked a significant transformation in compensating employees.
The formation of the 8th Pay Commission will, however, greatly help more than 1 crore employees to have a salary depending on the present-day economy. Keep coming back for further updates regarding the 8th Pay Commission and its effect on the salary structure of central government employees.