8th Pay Commission newest information: In excellent news for central government employees, Prime Minister Narendra Modi-led Union Cabinet has given its nod for the structure of the 8th Pay Commission. With this, central government employees can stay up for a salary hike.
PM Modi shared on X: “We are all proud of the efforts of all Government employees, who work to build a Viksit Bharat.
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The Cabinet’s decision on the 8th Pay Commission will improve quality of life and give a boost to consumption.”
The determination comes months after the dearness allowance for central government employees crossed 50% of central government employees’ fundamental salary. From July 1, 2024, central government employees and pensioners have been receiving 53% of their fundamental pay as dearness allowance/reduction, with the subsequent adjustment scheduled for January 2025.
8th Pay Commission: How much salary hike to anticipate?
The present salary construction, based mostly on the seventh Pay Commission’s tips applied from January 1, 2016, can be up to date after the 8th Pay Commission suggestions. ET consulted consultants relating to potential salary will increase, contemplating historic pay fee suggestions.
Krishnendu Chatterjee, TeamLease Vice President, was quoted as saying, “The Last Pay Commission was established in 2016, which recommended the minimum pay jump from 7,000 per month to 18,000 per month with a fitment factor of 2.57 times of basic pay. The maximum ceiling is 2.5 lakhs per month. Considering the inflation factor, there are indications that the fitment factor may stay between 2.5- 2.8 times, which will give a significant boost to employee salaries between Rs 40,000 and Rs 45,000. There are also suggestions of Performance based pay hike which are still under deliberation.”
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According to Rohitaashv Sinha from King Stubb & Kasiva, “Pay commissions are in most cases established every 10 years to assess and provide changes to the remunerations of central government employees. The last pay commission, i.e. the 7th pay commission took effect in January 2016 and gave a raise on the minimum basic pay from Rs 7000 to Rs 18000 using the fitment factor 2.57. In the 8th Pay Commission, it is believed that the increase the minimum basic pay will be an astonishing 186%. This may make the minimum basic pay to INR 51,480 per month. It seems that the fitment factor for it is 2.86. The changes are likely to be implemented through the Central Civil Services (Revised Pay) Rules, 2025 and may lead to enhanced pension and other retiral benefits such as EPF, Gratuity etc. and recommend changes in salary structures for government employees.”
SKV Law Offices’ Senior Associate Nihal Bhardwaj explains that historic knowledge suggests central government employees would possibly obtain a 25-30% pay rise underneath the 8th Pay Commission. The sixth Pay Commission (Effective from January 1, 2006, masking the interval 2006–2016) utilised a 1.86 fitment issue, delivering a 40% improve in wages, while the seventh Pay Commission (Effective from January 1, 2016, masking the interval 2016–2026) employed a 2.57 fitment issue, yielding roughly 23-25% greater salaries.
Staff associations are at present pushing for a fitment issue between 3.0 and three.5, which may probably elevate the minimal fundamental salary from Rs 18,000 to roughly Rs 25,000–Rs 26,000. Such changes would end in substantial enhancements throughout all pay grades, he stated.
8th Pay Commission: What is the fitment issue?
- The fitment issue serves as a multiplication coefficient employed to find out the revised compensation for central government employees and retirees. It represents a vital ingredient of the Pay Commission, utilised when implementing salary and pension will increase following new fee tips.
- The variation in grade pay evaluation and irregular spacing between pay bands instantly influences the quantum of fitment advantages. This inconsistency led quite a few stakeholders to advocate for the implementation of a uniform fitment issue relevant throughout all worker classes.
- The seventh Pay Commission established a commonplace fitment profit of two.57 relevant to all central government employees. This issue resulted in elevating the minimal fundamental pay to “Rs 18,000” month-to-month from the earlier “Rs. 7,000” (2.57 instances the fundamental remuneration underneath the sixth Pay Commission).
- A sensible demonstration helps clarify how public sector staff can decide their revised salary utilizing the fitment issue set by the 8th Pay Commission. Consider a situation the place your present fundamental pay is Rs 40,000 month-to-month, and let’s assume that the 8th Pay Commission suggests a fitment issue of two.5. This calculation would elevate your fundamental salary to Rs 1 lakh monthly.
- Initially, dearness allowance stays excluded, as per typical pay fee tips. The dearness allowance element will get included into the salary construction throughout subsequent years, following pay fee suggestions. Additional allowances would possibly endure modifications based mostly on the pay fee’s directives.
