The Central Government has taken a step forward towards implementing the 8th Pay Commission. The Central Government has approved the Terms of Reference. Now it remains to be seen how much salary increases employees receive.
8th Pay Commission India: The central government has taken a step forward toward the 8th Pay Commission. The central government has approved the terms of reference. Former Supreme Court judge Justice Ranjana Prakash Desai has been appointed the commission's chairperson.
The Commission will submit its report to the government within 18 months. Following this, subject to the Union Cabinet's approval, salaries for employees and pensioners will be increased under the 8th Pay Commission. Since this news broke, employees have been seeking information about how much their salaries will increase after the implementation of the new Pay Commission.
Fitment Factor and other allowances
Under the 7th Pay Commission, the government set a fitment factor of 2.57. It remains to be seen what the government's fitment factor will be in the 8th Pay Commission. The fitment factor directly impacts an employee's basic salary. For example, if an employee's basic salary is ₹20,000 and the government sets a fitment factor of 2.60, their new basic salary will be ₹52,000. The new fitment factor set by the government is multiplied by the employee's basic pay from the previous Pay Commission.
This is how the new basic pay of central government employees is determined. The salary increase under the new Pay Commission primarily depends on the fitment factor. Furthermore, an increase in an employee's basic pay also impacts other allowances.
For example, house rent allowance is directly linked to basic pay, meaning it will inevitably increase. The Commission can also recommend increases to the government for transport allowance and other allowances. These increases will also be implemented within a few days of government approval.
Will the salaries of employees be doubled?
Speaking to the media, Nexdigm Director of Payroll Services, Ramachandran Krishnamurthy, stated that if an employee's basic salary is ₹50,000 and the government sets a fitment factor of 2.0 under the 8th Pay Commission, the employee's basic pay will increase to ₹100,000. However, the revised pay matrix will then place employees in the nearest higher cell. Furthermore, if the fitment factor is 2.0, the basic pension of pensioners receiving ₹30,000 could increase to approximately ₹60,000.
