8th Pay Commission – Major news for crores of central government employees. Over the past few months, government employees and pensioners are eagerly waiting for the implementation of the 8th Pay Commission. They hope that the government will increase their salary and pension well. But a report has come which has shocked the employees and pensioners.
This report is from Kotak. Yes, Kotak Institutional Equities has published something in its report that if you are a central government employee or a pensioner, you will be unhappy after reading it. Let us know what has been said in the report. The 8th Pay Commission is likely to have a direct impact on 33 lakh central government employees and 66 lakh pensioners. Grade C employees, who account for about 90% of the total central government workforce, are expected to benefit the most.
What does report say about the 8th Pay Commission?
A recent report by Kotak Institutional Equities suggests that the fitment factor for the 8th Pay Commission may be as low as 1.8, leading to an actual salary increase of only 13%. Earlier an earlier report by Ambit Capital said that the current 7th Pay Commission, which will end in December 2025, has resulted in a salary hike of 14.3% since 2016, excluding allowances, which is still higher than the hike projected for the upcoming 8th Pay Commission.
Kotak Institutional Equities expects the timeline to be broadly in line with the pattern of previous pay commissions. The Sixth and Seventh Pay Commissions took about one and a half years to submit their reports after being constituted, while implementation took another 3-9 months after Cabinet approval.
The fitment factor will decide how much the salary will increase in the 8th pay commission?
Kotak estimates that the 8th Pay Commission could increase the minimum wage level from ₹18,000 to around ₹30,000 per month. This means the fitment factor will be around 1.8 and the actual wage increase will be around 13%.
The fitment factor is used to calculate an employee’s new basic pay based on his or her existing basic pay. For example, the Seventh Pay Commission had fixed a fitment factor of 2.57, increasing the monthly minimum basic pay of central government employees from Rs 7,000 to Rs 18,000.
Sweta Mitra
Working in the media for last 7 years. The journey started in the year 2018. For the past few years, my working experience has been in Bengali media. Currently working at Timesbull.com. Here I write like Business, National, and Utility News. My favorite hobbies are listening to music, traveling, food,...
Related Stories
Business
Business
Business
Business
Business
Business
Business
Business
Business
Business