Crores of government employees and retired employees are eagerly waiting for the implementation of the 8th Pay Commission. Meanwhile, a news has increased their happiness further.
A report in The Economic Times says that with the implementation of this pay commission, the salary of employees can increase by 30 to 34 percent.
Brokerage firm Ambit Capital has claimed in its report that salaries and pensions can be increased by 30-34%, which will benefit about 1.1 crore people. The new pay scale is expected to be implemented from January 2026, but for this the Pay Commission report will have to be prepared first, then sent to the government and approved. So far only the announcement has been made. Who will be the chairman of the commission and what will be his tenure? This decision is yet to be taken.
Who will get this benefit?
About 1.1 crore people can get benefit from 8th Pay Commission, which includes about 44 lakh central government employees and about 68 lakh pensioners. After the implementation of 8th Pay Commission, there will be growth in the basic salary, allowances and retirement benefits of the employees.
What is the fitment factor?
An important part of deciding the new salary is the fitment factor, this is the number which is used to multiply the existing basic salary to decide the new salary. Example- The Seventh Pay Commission used a factor of 2.57. At that time, it increased the minimum basic salary from Rs 7,000 to Rs 18,000 per month. The report says that this time the fitment factor can be between 1.83 and 2.46. The exact figure will play an important role in how much increase the employees and pensioners will get.
What has been the history of salary hike?
Previous pay commissions have shown salary growth at many levels. The 6th Pay Commission (2006) gave a growth of about 54% in total salary and allowances. After this, the 7th Pay Commission was implemented in 2016, when after adding 14.3% to the basic salary and other allowances, a growth of about 23% was shown in the first year.
How is salary calculated?
A government employee’s salary includes basic salary, dearness allowance (DA), house rent allowance (HRA), transport allowance (TA), and other minor benefits. Over time, the share of basic salary has decreased from 65% to about 50% of the total package and the share of other allowances has increased even more. Monthly salary is given by adding all these. Similar changes will be seen for pensioners as well. However, HRA or TA will not be given.
