8th Pay Commission: Millions of central government employees and pensioners are currently eagerly awaiting news of the 8th Pay Commission. Government departments have been abuzz since the notification of its formation in November. The commission has been given 18 months to submit its report. Experts believe the new pay commission could be implemented by the end of 2027 or early 2028.
But the biggest debate among all is surrounding the “Fitment Factor.” This is the figure that determines how much money will be deposited into your account at the end of the month. Recently, the Federation of National Postal Organizations (FNPO) put forward a major proposal to the government, further fueling this debate. Let’s understand what changes would occur to the salaries of everyone from a peon to a senior officer if the fitment factor is 2 or 3.
Salary will be decided by the fitment factor
The fitment factor plays a crucial role in determining the salaries of government employees. It’s a multiplier that multiplies your basic salary. At the time of the 7th Pay Commission, this factor was 2.57, increasing the basic salary from Rs 7,440 to Rs 18,000.
Now, the postal employees’ union, FNPO, has demanded in a letter to the National Council that the fitment factor for employees in Groups A, B, C, and D be kept between 3 and 3.5. They have clearly stated that a respectable salary increase is necessary given rising inflation. However, there is also discussion that the government may limit it to 2. There is a huge difference between these two scenarios.
If the fitment factor is 2, how much will the salary increase?
Suppose the government takes a slightly stricter stance and sets the fitment factor to ‘2’. According to experts at Nexdigm Solutions, this will have a direct impact on basic pay. For Level 1 employees (such as peons or entry-level staff), whose current estimated basic salary is Rs 18,000, factor 2 would increase their new basic salary to Rs 36,000, a direct increase of Rs 18,000. Moving up a bit, for Level 10 officers, their salary would increase from Rs 56,100 to Rs 112,200. At the top level, Level 18 (Cabinet Secretary level), this increase would reach Rs 2.5 lakh, reaching Rs 5 lakh. This means that even factor 2 would result in a significant salary increase, but employees are expecting more.
If the fitment factor is 3, how much will the salary increase?
If the government accepts the demands of FNPO and other employee organizations and increases the fitment factor to 3, it will be nothing short of a lottery. In its 60-page report, the organization also suggests changes to the pay matrix and allowances.
Factor 3 means that a Level 1 employee’s basic salary, which was Rs 36,000 under Factor 2, will increase to Rs 54,000. Level 10 officers’ salaries will reach Rs 168,300. And for the highest-ranking positions, Level 18, their basic salary could reach Rs 7.5 lakh. This figure is quite appealing to employees, which is why a factor of 3 or 3.5 is being emphasized so much.
The decisive meeting is to be held on February 25
All eyes are now set on February 25th. According to FNPO member Shivaji Vasireddy, a crucial meeting of the National Council Joint Monitoring Committee (NCJMC) is scheduled for that day. The purpose of this meeting is to bring together all the employees’ demands and prepare a final draft. Following the meeting, the draft will be submitted to Ranjana Prakash Desai, Chairperson of the 8th Pay Commission. This meeting will largely determine the extent to which the employees’ demands will be presented to the Commission.