Which formula will decide 8th Pay Commission, what will be the new salary, know all in detail

8th Pay Commission: The government has recently put forth the proposal for the 8th Pay Commission aimed at central employees, which is expected to result in an increase in pensions and allowances for over 1 crore government employees and pensioners. Following the announcement of the 8th Pay Commission, there is considerable interest in understanding the potential rise in monthly income for central employees and pensioners.

A formula will help

A formula has emerged that may help estimate the salary increments for employees across levels 1 to 10. It is anticipated that, similar to the 7th Pay Commission, a formula will be utilized for adjusting salaries and pensions for central government employees, taking into account the prevailing economic conditions.

7th Pay Commission introduced a fitment factor of 2.57

According to a media report, the 7th Pay Commission raised the minimum basic pay for central government employees from Rs 7,000 to Rs 18,000 through the application of the Aykroyd formula. Nearly ten years ago, the 7th Pay Commission introduced a fitment factor of 2.57 to revise the pay and pension of central government employees and pensioners. The pay matrix established based on this fitment factor and formula has been in effect since the implementation of the 7th Pay Commission recommendations in 2016. It is believed that a similar formula will be adopted under the 8th Pay Commission to ensure that government employees’ salaries are aligned with current inflation rates.

What will be the new salary?

Reports indicate that the government may consider a fitment factor ranging from 1.92 to 2.86. Should the higher end of this range, 2.86, be selected, the minimum basic salary for government employees could potentially rise to Rs 51,480, significantly above the current Rs 18,000. Additionally, pensions may see an increase ranging from Rs 9,000 to Rs 25,740. The specifics remain unclear, but it is anticipated that the central government will soon announce the framework for the 8th Pay Commission, which will include a chairman and two members.