Employees are set to receive a big gift after Holi. After the implementation of the 8th Pay Commission, there is a possibility of a significant salary increase for government employees. Earlier in January, the Central Government approved the formation of the 8th Pay Commission. According to reports, the government may begin the process of forming the commission next month. The commission will consist of a chairman and two members.
Since the approval of the 8th Pay Commission, excitement has grown regarding the salary and pension increases for employees, especially concerning the fitment factor. It’s important to note that the Pay Commission doesn’t just focus on salary and pension increases but also reviews all the allowances and benefits provided to employees.
Unnecessary Allowances May Be Abolished
According to reports, the 8th Pay Commission may remove old and unnecessary allowances. Additionally, there are discussions about adding new allowances. The 7th Pay Commission had already abolished several allowances. It reviewed a total of 196 allowances, of which only 95 were approved. The remaining 101 allowances were either abolished or merged with others.
How Much Can the Pension Increase?
It is estimated that the commission could apply a fitment factor of 2.86 to increase the salary of employees. If this happens, after the recommendations of the 8th Pay Commission are implemented, there could be a significant increase in the salary of central employees.
For example, if an employee’s basic salary is ₹21,000, applying the fitment factor of 2.86 would increase it to ₹60,060. Similarly, if the current minimum pension of an employee is ₹8,000, after applying the fitment factor of 2.86, the pension would rise to around ₹20,480.
What is the Fitment Factor?
The fitment factor is a multiplier used to calculate the minimum salary and pension of central employees and pensioners. Each Pay Commission has fixed a different fitment factor to determine salary increases.
When Will the 8th Pay Commission Be Formed?
According to reports, the government may announce the formation of the 8th Pay Commission by April 2025. The central government is expected to announce the names of the commission’s chairman and two other members. After the formation of the commission, it may take about a year for the recommendations to be implemented.
