8th Pay Commission: If you are a government employee, then this news can be special for you. At present, all government employees and pensioners are eagerly waiting for the 8th pay. However, the government has not yet constituted the 8th Pay Commission. In such a situation, it is difficult to guess how much the salary of government employees can increase. According to the estimate of the brokerage house, the salary can increase from 13 percent to 54 percent.
Know what is the estimate of the brokerage house
Let us tell you that brokerage firm Ambit Capital released a report on July 9, according to which the Fitment Factor can be from 1.83 to 2.46. After which, the salary of the employees can increase from 14 percent to 54 percent. However, Ambit Capital has said in its report that the increase of 54 percent in the salary of the employees is very less. In such a situation, there can be an increase of 14% to 34%. On the other hand, Kotak Institutional Equities has said in its report of 21 July that the salary of the employees can increase by a factor of 1.8 and 13%.
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What happens with the fitment factor and DA reset?
Let us tell you that the fitment factor is given on basic pay. In which the actual salary is less. This is because DA becomes zero as soon as the new pay commission is implemented.
According to the example, in the year 2016, the factor in the 7th pay commission was 2.57, after which the minimum salary increased from 7000 to 18000, but after the DA reset, the actual increase was 14.3%.
Know how much increase can happen this time
At present, DA is 55% of the basic pay, which the 7th pay commission has set at 125% as before. According to experts, even though the fitment factor is low, the actual increase is much higher than the DA factor.
How much can change happen?
If the salary of a government employee is 50000, then there can be a significant increase after the implementation of the 8th Pay Commission. However, this will depend on the fitment factor decided by the government.
If the fitment factor is 1.82, then the salary will be 57000. At the same time, if the fitment factor is 2.15 percent, the salary will be 67000. After this, if the factor is 2.46, the salary of the employees will be 77000.
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How much will it affect the government’s budget?
If the 8th Pay Commission is implemented, then there can be a significant increase in the salary and pension bill of the government. This increase in the budget estimate for the financial year 2025-26 can affect the fiscal deficit. According to experts, after the salary increase, the burden on the government can increase by Rs 1.5–2 lakh crore.
How much will it affect the stock market?
According to the brokerage house, the salary hike of the 8th Pay Commission can increase consumer demand. At the same time, FMCG, automobile, consumer durable, and retail sectors will get direct benefits. Along with this, consumption is likely to increase in rural and urban areas. After which, the shares of the companies related to it can see a rise.
According to Ambit, the government can factor from 1.83 to 2.46. The exact figure will be decided only when the 8th Pay Commission is formed, and there will be a discussion with the beneficiaries. It may take many months for this process to fix the Terms of Reference.