• Source:JND
Add as a preferred

8th Pay Commission Update: Discussions regarding the anticipated Fitment Factor have accelerated since the Modi government announced the 8th Pay Commission. Since it is the multiplier used to update the base pay of central government employees, this factor is very important. In anticipation of a substantial increase in their salary and benefits, nearly 1.2 crore central employees and pensioners are anxiously awaiting clarification on this.

ToR for 8th Pay Commission Likely Soon

The Terms of Reference (ToR) for the 8th Pay Commission are anticipated to be released by the central government in the upcoming weeks, per a Financial Express report. The chairman and other important members will be appointed after the ToR is finalized. Regarding the hiring of 40 positions for the new commission, the majority of which will be filled through deputations, the Finance Ministry already released two circulars last month.

Will the 2.86 Fitment Factor Demand Be Fulfilled?

The fitment factor is being pushed for by employee unions; many are calling for it to be set at 2.86. Basic salaries and pensions would increase significantly as a result of such a revision. However, given the potential financial burden, sources indicate that the government might find it challenging to fulfill this demand.

Also Read: E-Passport Launched In India; What Is It? Know Its Features, Benefits And Application Process Here

8th Pay Commission Salary Calulator: How Much Salary Hike Can Be Expected?

How much the salaries will rise is still the crucial question. Only the basic pay is affected, regardless of whether the fitment factor is set at 2.86 or 1.92. The minimum basic pay could increase to about Rs 34,560 if the factor is set at 1.92. Although the figure seems encouraging, experts note that a sizable amount of this increase will only be used to compensate for the current Dearness Relief (DR) for pensioners and Dearness Allowance (DA) for employees. The net increase in total take-home pay may therefore be quite small.

Salary Increament In Previous Pay Commissions

6th Pay Commission (2006): A significant 54% increase in salaries was the result of a fitment factor of 1.86.

7th Pay Commission (2016): Because a significant portion went into DA/DR adjustment, the actual hike was only 14.2%, even though the fitment factor was higher at 2.57. The total cost of implementation to the exchequer was Rs 1.02 lakh crore.

Although there are high expectations for a large hike, a number of factors, such as inflation trends, budgetary restraints, and political considerations, will determine the final fitment factor and the true benefit it provides.

Also Read: Internet, Login Not Required: Here's How You Can Check Your PF Balance With Just SMS Or Missed Call