The central government has recently approved the 8th Pay Commission. It was expected that the fitment factor could be as high as 2.86, which would result in a huge 186 per cent increase in the salary of employees. However, former Finance Secretary Subhash Garg Chandra stated in an interview with a TV channel that asking for a fitment factor of 2.86 is like asking for the moon. This means that such a high fitment factor is impossible to achieve in the 8th Pay Commission.
How Much Will the Salary Increase in the 8th Pay Commission?
Former Finance Secretary Subhash Chandra Garg has stated that the fitment factor in the 8th Pay Commission could range from 1.92 to 2.08. Based on this, the minimum basic salary of central employees is expected to increase by 10 to 30 percent. In comparison, the fitment factor in the 7th Pay Commission was 2.57, which resulted in a salary increase of only 14.2 percent.
Expected Salary After a 10-30% Increase
If the minimum basic salary of central employees increases by 10 percent, it will rise to Rs 30,420 per month. Here’s how this is calculated:
- The current minimum basic salary is Rs 18,000 per month.
- Employees currently receive a 53 percent dearness allowance (DA).
- Before the 8th Pay Commission is implemented, two additional DA increments of 3 percent each will bring the total DA to 59 percent.
- With the 8th Pay Commission, the minimum basic salary (Rs 18,000) and DA (59%) will be merged. A 10 percent increase would result in a new monthly salary of Rs 30,420 (Rs 18,000 + 69%).
If the maximum recommended salary increase of 30 percent is applied, the new salary would be Rs 34,020.
The announcement of the 8th Pay Commission which is set to be implemented from January 1, next year, promises to bring the much-needed relief for the lakhs of central government employees and retirees.
One of the highly anticipated changes is the fitment factor which plays an… pic.twitter.com/9idnnGlMsn
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Origin of the 2.86 Fitment Factor
After the approval of the 8th Pay Commission, NC-JCM Secretary Shiv Gopal Mishra suggested that the fitment factor could be set at 2.86. He believed that this would lead to a significant 186 percent increase in the salary of central government employees. If the government approves the 2.86 fitment factor, the minimum basic salary could rise from Rs 18,000 to Rs 51,480. Additionally, the pensions for pensioners could increase from Rs 9,000 to Rs 25,740.