8th Pay Commission – The government may soon announce the formation of the Eighth Pay Commission. The process is underway for this. It is being told that the process of preparing the terms of reference and work order for the formation of the commission is underway. It is being told that this time the increase in salary will largely depend on the fitment factor, which can be between 1.90 to 1.95. In such a situation, it is believed that a good increase can be seen in the salary of the employees.
It is worth noting that in January this year, the government had announced the formation of the commission. The process of appointment of its chairman and members is underway. Since then, all kinds of speculations are being made about the fitment factor (the basis of pay scale determination). Some employee organizations and officers are assuming that this time it will be 2.86. The reasoning behind this is that the government will also revise the fitment factor keeping in mind the rising inflation.
How does the fitment factor work?
Actually, the basic salary increases on the basis of the fitment factor. For example, if the basic salary of an employee is Rs 20,000, then it will be multiplied by the fitment factor 2.86. On this basis, the basic salary can increase to Rs 57,200, but sources say that the fitment factor will remain below 2.0. The government can apply a fitment factor of 1.90 to 1.95. Sources also say that this time the government can bring a separate formula to adjust the dearness allowance by keeping the fitment low.
How much increase in last pay commission
In the 6th Pay Commission of 2006, the fitment factor was 1.86. In the 7th Pay Commission of 2016, the fitment factor was 2.57 percent, but the actual increase in the pay scale was only 14.2 percent. Because, most of the fitment of the 7th Pay Commission was spent only in adjusting the dearness allowance. Whereas after the recommendations of the 6th Pay Commission, the basic salary was increased by about 54 percent.
It may take time to implement
The central government announced the formation of the eighth pay commission in January, but it has not yet been established. In this case, it is possible that the recommendations of the eighth pay commission may be implemented by the year 2027. This is because past records indicate that it takes between 18 to 26 months for the final report to be released after the commission is formed. The report of the sixth pay commission came out in about 18 months. Similarly, the formation of the seventh pay commission was approved on September 24, 2013, while the report was released on November 19, 2015. Therefore, the delays in the formation of the eighth pay commission clearly indicate that it may take time for the report to be released.