Is the wait for 8th Pay Commission over? Know the complete math of fitment factor and salary hike
8th Pay Commission: The fitment factor is likely to be 2.86, which can lead to 40-50% increase in salary and pension. Know the complete maths!
8th Pay Commission: After the announcement of the formation of the 8th Pay Commission by the Central Government on January 16, the possibilities of change in the salary of government employees have increased. After this decision, discussions are now going on about how much the salary of central employees can increase.
What is the fitment factor?
The fitment factor is a multiplier that is used to calculate the minimum basic pay of central government employees and pensioners. It is determined differently in every pay commission.
- The fitment factor in the 6th Pay Commission (6th CPC) was 1.86.
- In the 7th Pay Commission (7th CPC) it was fixed at 2.57.
- The fitment factor in the 8th Pay Commission (8th CPC) can be from 2.28 to 2.86.
If it is fixed at 2.86, then it is possible to increase the salary of employees by 40-50%.
How much will the salary increase with the 8th Pay Commission?
If the fitment factor is fixed at 2.86 in the new pay commission, then the salary of the employees will increase significantly. For example:
- If the current basic salary of an employee is Rs 20,000, then new salary:
- 20,000 × 2.86 = Rs 57,200
Possible increase in minimum basic salary and pension
If the fitment factor in the 8th Pay Commission is 2.86, the minimum wage and pension may increase as follows:
- Current minimum basic salary: Rs 18,000
- Potential new minimum basic salary: 18,000 × 2.86 = Rs 51,480
- Current minimum pension: Rs 9,000
- Potential new minimum pension: 9,000 × 2.86 = Rs 25,740
Other Benefits from 8th Pay Commission
After the implementation of 8th Pay Commission, not only the basic salary will increase but allowances and other benefits are also likely to increase.
- Dearness Allowance (DA): Dearness allowance may also increase with the increase in salary.
- Performance Pay: There is a possibility of giving additional benefits in salary based on the efficiency of the employees.
- Other Allowances: House Rent Allowance (HRA), Travel Allowance (TA) and other allowances may also be revised.