8th Pay Commission: A significant update has come to light regarding the 8th Pay Commission. The Bharatiya Pratiraksha Mazdoor Sangh (BPMS) has presented a memorandum to the commission. The organization is advocating for substantial changes in salary, fitment factor, annual increment, and the approach to salary determination. The minimum basic salary for employees has been raised from Rs 18,000 to Rs 72,000 per month.
Key Takeaways
Quick Read- Why is there a demand for a minimum wage of Rs 72,000?
- Request to raise the fitment factor to 4
- Proposal to increase annual increment from 3% to 6%
- Change in family size consideration
Why is there a demand for a minimum wage of Rs 72,000?
BPMS explains that inflation and the cost of living have surged considerably in recent times. As a result, salary hikes are crucial to ensure employees enjoy a better quality of life. The union referenced data indicating that the nation’s per capita income has risen from Rs 1.03 lakh in 2016-17 to around Rs 1.92 lakh in 2024-25, marking an increase of about 87%. This supports the call for a salary boost.
Request to raise the fitment factor to 4
The employee union has suggested raising the fitment factor from 2.57 to 4. The fitment factor serves as the multiplier for determining new salaries. Should this request be granted, employees could experience a notable salary increase. The union asserts that this adjustment will help maintain a proper balance between inflation and income growth.
Proposal to increase annual increment from 3% to 6%
The BPMS has also urged for an annual salary increment to rise from 3% to 6%. They argue that merely raising the dearness allowance (DA) is insufficient; increments should also be enhanced to boost employees’ real income.
Change in family size consideration
Another key recommendation is to expand the family size considered in salary calculations from 3 to 5. The union contends that this adjustment is necessary as employees today frequently bear the responsibility for their parents, spouses, and children.
What is 8th Pay Commission?
The government announced the formation of the 8th Pay Commission on January 17, 2025. This commission is formed every 10 years to review the salaries, allowances, and pensions of central government employees and pensioners. The commission is required to submit its report within 18 months.
Opportunity to give suggestions till 30th April
The Commission has sought suggestions from all stakeholders by April 30, 2026. Recommendations will then be prepared based on these suggestions, and the final decision will be taken by the government.