Eighth Pay Commission Updates: Recently, after the formal notification of Term of Reference (TOR) was issued, the 8th Pay Commission under the chairmanship of Justice Ranjana Desai has started its work. The Commission’s recommendations will have a direct impact on more than 50 lakh central employees and 65 lakh pensioners.
How much can be the fitment factor?
At present, everyone’s eyes are on the fitment factor, because the increase in salary and pension is calculated on this basis. However, its final decision will be taken only after the approval of the Union Cabinet. The commission has to submit its report within 18 months, which will include suggestions ranging from fitment factor to basic pay structure.
Many important aspects like inflation, cost of living and financial condition of the country are considered in determining the fitment factor. This factor was kept at 2.57 in the 7th Pay Commission, and it is believed that it may remain around this in the 8th Pay Commission also.
How much can the salary increase?
Ambit Capital’s report in July estimated that this time the fitment factor could be between 1.83 to 2.46. For example, if the basic pay of an employee is Rs 18,000, then if the fitment factor is 1.83, his salary will increase to Rs 39,940, whereas at the factor of 2.46, it can increase to Rs 44,280. This indicates that a significant increase in the salary of employees is possible in the next pay commission.
It is noteworthy that the formation of the Eighth Pay Commission was announced at the beginning of this year. But this committee was formally announced with a delay of about ten months. In such a situation, when 18 years time has been given to the Pay Commission to send recommendations, it is difficult to implement it from the beginning of next year. It is more likely that it will be implemented from 2027 and along with the arrears, the money will be given to the employees by adding it to their salary or pension.
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