What is the 8th Pay Commission? : The central government periodically revises the salaries and pensions of its employees. A new pay commission is formed for this purpose. The 8th Pay Commission is the latest in this series. This commission will provide recommendations for improving employee salaries and pensions.
Fitment Factor: The Salary Math
This time too, the salary increase will be based on the fitment factor. This is a number by which the basic salary of employees is multiplied to calculate their new salary. Factors like inflation, employee needs, and the country’s economic situation are considered when determining this factor.
When will the 8th Pay Commission come?
According to current information, the 8th Pay Commission will be formed in 2026, when the term of the 7th Pay Commission ends. After the new pay commission is implemented, a substantial increase in the salaries and pensions of employees is expected.
How does the Fitment Factor help?
- Impact of Inflation: While determining the fitment factor, the pay commission analyzes the inflation rate and its impact on the lives of employees.
- Essential Expenses: Everyday expenses like rice, wheat, milk, oil, electricity, and children’s education are also taken into account.
- Economic Situation: The country’s economic condition and growth rate also affect the fitment factor.
- Performance: Employee work and productivity are also considered when increasing salaries.
How much will the salary increase?
Financial experts believe that the fitment factor in the 8th Pay Commission could be between 2.6 and 2.85. This means that employees’ salaries could increase by 25% to 30%.
Example:
If an employee’s current salary is ₹18,000, it could increase to ₹40,000 or more. In the 7th Pay Commission, the fitment factor was 2.57, which resulted in a minimum salary of ₹18,000.
Benefits of Allowances Too!
Along with the salary increase, employees will also benefit from allowances like Dearness Allowance (DA), House Rent Allowance (HRA), and Performance Pay. Allowances will also increase according to inflation. Employees who perform well will receive even more benefits. Pensioners will also benefit in the same proportion.
How is the Fitment Factor Determined?
- The fitment factor is determined based on the inflation rate.
- Recommendations are made based on the government’s financial situation and GDP growth.
- The salary increase in the private sector is also considered when setting salaries.
What will be the overall impact?
After the implementation of the 8th Pay Commission, there will be an increase of 25-30% in the salaries of employees. The minimum salary can increase from ₹18,000 to ₹40,000. Pensioners will also benefit in the same proportion.