8th Pay Commission discussion never seems to end. In essence, there is a discussion about when the new commission will come into action and to what extent salaries and pensions of government employees will be raised. So if you are a government employee too, this article is for you. Anyways, in a few days the central government employees are going to get good news. Chief among them was the establishment of the 8th Pay Commission.
8th pay commission?
Now the controversy on when will notification of 8th Pay Commission come from central government is increasing day by day. This is being predicted various different ways. An announcement on this is also aplenty that it may happen at the Budget 2025. Pay committees come into being at roughly intervals of a decade.
Formed in 2014, the 7th Pay Commission has been implemented since 2016. Thus, the 8th Pay Commission should be in place by 2026. Once the 8th Pay Commission is applied, there will definitely be a steep hike in the salary of central government employees as well as pensions of pensioners. Changes will especially be made in the salaries of the employees.
The fitment factor—one of the most significant factors determining basic pay—is largely debated among both groups. The current fitment factor under the 7th Pay Commission stands at 2.57. However, recently Shiv Gopal Mishra of National Joint Consultative Organization (NC-JCM) has clamoured for rise in fitment factor. They are saying it due to inflation that it has become important. The fitment factor is a coefficient that is used to revise salaries and pensions.
Salary will be hiked?
The 7th pay band has a fixed fitment factor of 2.57 As per this, the basic pay has been increased from Rs 7,000 to Rs 17,990. The 8th pay panel also recommended increasing the fitment factor that currently stands at 2.57 to around 2.86. The minimum salary of government employees will rise to Rs 51,451 if fitment factor in the 8th Pay Commission suggested (2.68).
If there is a change in the fitment factor, then pension of pensioner will also increase considerably. With the old fitment factor at 2.86, pension has been increased from present Rs 9,000 to Rs 25,740. The first memorandum was submitted to the then Union Cabinet Secretary Rajiv Gauba before the presentation of the Union Budget in July 2024. The second memorandum was handed over to T.V. Somanathan, who joined as the new Cabinet Secretary on August 30.
What about pension?
The fitment factor is used to derive salary and pension hikes against the previous minimum amount. This implies vast pay hikes and pension rises if the fitment element is altered.