The Union Cabinet approved the 8th Pay Commission earlier this month, which is set to revise the salaries and pensions of central government employees, with implementation expected next year. Currently, the salary structure for central employees is based on the 7th Pay Commission, which was established in 2014 and its recommendations took effect on January 1, 2016. The upcoming Pay Commission will determine salaries for central employees using a fitment factor.

 

What is the fitment factor?

The fitment factor is a calculation method used to determine the salaries and pensions of government employees. It is established by evaluating various elements, including inflation, employee needs, and the government’s financial situation.

 

Reports suggest that the 8th Pay Commission may propose a fitment factor of 2.86. For context, the 7th Pay Commission had a fitment factor of 2.57, which raised the salary in Level 1 from Rs 7,000 (under the 6th Pay Commission) to Rs 18,000. However, when including dearness allowance (DA), house rent allowance (HRA), and transport allowance, the total salary amounts to Rs 36,020.

 

Fitment Factor of the 8th Pay Commission

Various reports indicate that the fitment factor for the 8th Pay Commission could be set at 2.86. This adjustment is expected to raise the basic salary in Level 1 from Rs 18,000 to Rs 51,480, and it will be applicable across all levels as follows-

 

Level 1 includes peons, attendants, and support staff. Their current basic pay of Rs 18,000 is set to jump to Rs 51,480, which is an increase of Rs 33,480.

 

Level 2 consists of lower division clerks. They currently earn Rs 19,900, but this is expected to rise to Rs 56,914, marking an increase of Rs 37,014.

 

Level 3 covers constables and skilled public service staff. Their basic pay is currently Rs 21,700, and it’s anticipated to increase to Rs 62,062, a boost of Rs 40,362.

 

Level 4 includes Grade D Stenographers and Junior Clerks. Their current salary of Rs 25,500 may rise to Rs 72,930, which is an increase of Rs 47,430.

 

Level 5 is made up of senior clerks and high-level technical staff. Their basic pay is currently Rs 29,200 and is likely to be adjusted to Rs 83,512, an increase of Rs 54,312.

 

Level 6 features Inspectors and Sub Inspectors. Their pay might be revised to Rs 1,01,244, which is an increase of Rs 65,844.

 

Level 7 includes superintendents, section officers, and assistant engineers. Their basic pay could go up from Rs 44,900 to Rs 1,28,414, an increase of Rs 83,514.

 

For Level 8, Section Officers and Assistant Audit Officers may see their basic pay rise by Rs 47,600 to Rs 1,36,136, which is an increase of Rs 88,536.

 

Level 9 covers Deputy Superintendents and Accounts Officers, whose current pay of Rs 53,100 is likely to increase to Rs 1,51,866, an increase of Rs 98,766.

 

Finally, Level 10 includes Group A officers, like entry-level civil service officers, with a current basic pay of Rs 56,100. This could rise to Rs 1,60,446, an increase of Rs 1,04,346.