8th Pay Commission Salary Calculator: The biggest question right now regarding the 8th Pay Commission is what the fitment factor will be. This single figure will determine the increase in salary and pension.
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8th Pay Commission Latest News: The 8th Pay Commission for central employees and pensioners is once again in the news. As discussions regarding the commission progress, expectations regarding salary and pension increases are also rising. This time, the focus is primarily on the fitment factor, as it is the single factor that will determine how much your salary and pension will increase. The recent suggestion of a 3.25 fitment factor has raised new hopes among employees. Here, we explain in simple terms what the fitment factor is and what the 3.25 figure means for you.
What is fitment factor and why is it so important?
Simply put, the fitment factor is a number used to increase the existing basic salary and pension. When the Pay Commission issues its decision, the same fitment factor is applied at all levels, determining the new basic salary. This new basic salary is used to determine DA and other increments. Therefore, even a small change in the fitment factor can have a significant impact on your pocket.
Where did the suggestion of 3.25 fitment factor come from?
The issue took a new turn when the Federation of National Postal Organizations (FNPOA) recommended a fitment factor of 3.0 to 3.25 for postal employees, including those in Group A to Group D. The organization stated that there has been a long-standing problem of salary stagnation and that a higher fitment factor is necessary to maintain balance at all levels.
Understand the calculation of fitment factor with an example
At present, the minimum basic salary of a Level 1 central employee is Rs 18,000.
If the fitment factor is kept at 2 then the basic salary will increase to Rs 36000.
If this factor becomes 3 then the basic salary can directly reach Rs 54000.
The 7th Pay Commission set a fitment factor of 2.57, increasing the minimum salary from ₹7,000 to ₹18,000. This is why employees are demanding a higher fitment factor this time as well.
How much will the salary increase in the 8th Pay Commission, what is the estimate
Over the past few months, various estimates have emerged regarding the fitment factor. According to Ambit Capital, the overall salary increase could be between 30 and 34 percent, which could result in a fitment factor in the range of 1.8 and 2.46.
Meanwhile, employee organizations are focused on the 2.57 fitment factor of the 7th Pay Commission. Given rising inflation and daily expenses, employees are hoping that this time too, the factor will be at least around that level or slightly higher.
Former Finance Secretary SC Garg recently issued a statement. He believes a fitment factor between 1.92 and 2.08 would be more practical. He stated clearly that a figure of 2.86 or higher could put significant pressure on the government’s finances. According to him, the final decision will depend on the government’s financial situation and the Pay Commission report.
There is also a demand for a 5% annual increase.
The postal employees’ union has demanded not only a fitment factor but also a 5% annual salary increase. They also call for improvements in allowances and changes to the pay matrix system. According to the union’s general secretary, a National Council meeting is expected in late February, after which all suggestions will be collated and sent to the chairman of the 8th Pay Commission.
After all, how much fitment factor is possible to get?
Currently, there’s a significant gap between employee demands and expert opinion. While employees want a fitment factor of 3 or higher, most experts believe the final decision will likely be between 2.0 and 2.5. The government must both meet employee expectations and budgetary constraints.
Salary and pension hike based on fitment factor
The biggest question regarding the 8th Pay Commission right now is the fitment factor. This single figure will determine the salary and pension increase. Speculation will continue until the Commission’s final report is released. But it is certain that the government’s decision on the fitment factor in the future could change the lives of millions of central government employees and pensioners.
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