Big news for government employees. Employees are in for a nice surprise after Holi! Reports suggest that the government might kick off the process for the 8th Pay Commission as early as next month, in April. They could also finalize the names for a chairman and two members of the commission around the same time.
Once the 8th Pay Commission is up and running, there’s a good chance that government employees will see a significant salary boost. Back in January, the central government gave the green light for the formation of this commission.
Since the approval, excitement has been building among employees about potential increases in their salaries and pensions, especially concerning the fitment factor. It’s important to note that the Pay Commission’s role goes beyond just salary hikes; it also reviews all the allowances and benefits provided to employees.
There’s talk that some outdated allowances might be cut. The commission is expected to look into eliminating old and unnecessary allowances while possibly introducing new ones. The previous 7th Pay Commission had already scrapped many allowances, reviewing a total of 196 and approving only 95, while 101 were either abolished or merged with others.
How much can the pension rise?
It is anticipated that the commission may apply a fitment factor of 2.86 to boost employee salaries. If this occurs, central employees could see a significant salary increase following the recommendations of the 8th Pay Commission. For instance, if an employee’s basic salary is Rs 21,000, applying the fitment factor of 2.86 would raise it to Rs 60,060. Consequently, if an employee’s current minimum pension is Rs 8,000, after applying the same fitment factor, their pension would increase to around Rs 20,480.
What is the fitment factor?
In this context, you might wonder what the fitment factor is that the commission will utilize to enhance employee salaries. The fitment factor serves as a multiplier for calculating the minimum salary of central employees and pensioners. It’s important to note that each commission has established different fitment factors for salary increases in the past.
When will the 8th Pay Commission be established?
Reports suggest that the government may announce the formation of the 8th Pay Commission by April 2025. This announcement could include the names of the commission’s chairman and two additional members. Once the commission is formed, it may take approximately a year for its recommendations to be put into effect.