8th Pay Commission Latest News: The Narendra Modi-led Central Government has given a significant gift to its employees. On Thursday, January 16, Union Minister Ashwini Vaishnaw announced the approval of the 8th Pay Commission to revise the salaries of central government employees. With the implementation of the 8th Pay Commission’s recommendations, employees’ salaries, Dearness Allowance (DA), and other benefits are expected to witness substantial increases. Here’s a detailed look at how much salaries are likely to increase.
Expected Salary Increase
The 8th Pay Commission’s recommendations, once implemented, will bring notable changes to the salary structure of central government employees. Based on previous trends, salary revisions are made using a fitment factor, which determines the revised pay scale at different levels.
The 7th Pay Commission had applied a fitment factor of 2.57 for salary revisions. In contrast, the 8th Pay Commission is expected to recommend a higher fitment factor of 2.86, which would lead to a significant salary hike for employees.
What Is the Fitment Factor?
The fitment factor is a calculation used to determine the increase in the basic salary and pension of government employees and retirees. It serves as a multiplier applied to the existing basic salary to revise the new pay scale. However, allowances such as House Rent Allowance (HRA) and Travel Allowance (TA) are not included in this calculation.
8th Pay Commission : Estimated Salary Hike
It is anticipated that the implementation of the 8th Pay Commission recommendations will result in a substantial increase in the basic salary of central government employees.
- Currently, the minimum basic salary is ₹18,000, which is paid to Level 1 employees.
- After the implementation of the new recommendations, this structure is expected to be revised, and the minimum basic salary could potentially double.
- Similarly, retirees can also expect a significant hike in their pensions.
However, these are preliminary estimates, and the actual hike will depend on the final recommendations of the commission.
Current Salary Structure
As of now, central government employees’ salaries are determined by their grade, level, and the recommendations of the 7th Pay Commission. This structure will undergo significant revision once the 8th Pay Commission’s suggestions are approved and implemented.
Implementation Timeline
The recommendations of the 8th Pay Commission are expected to come into effect in 2026. The 7th Pay Commission, implemented in 2016, provided salary structures valid for a duration of 10 years, which will end in 2026.
From the approval of the Pay Commission to the submission of recommendations to the government, the process could take approximately 1.5 years. While the government generally follows the recommendations of the Pay Commission, modifications may also be made if required.
