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- 8th Pay Commission, Expected Salary, Pension Hike; Change in Fitment Factor and More Details
New Delhi5 minutes ago
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On 16 January 2025, Prime Minister Narendra Modi and Union Cabinet approved the formation of 8th Pay Commission
The government will implement the 8th Pay Commission from 1 January 2026. The Pay Commission was approved on 16 January 2025. Meanwhile, the government has been suggested to merge the level of employees. It is also expected that the Pay Commission can implement the fitment factor up to 2.86.
This can increase the salary of center employees from Rs 40,000 to Rs 1 lakh. At the same time, more than 50 lakh central government employees and about 65 lakh pensioners will benefit from revising salary, pension and allowance (allowances).
The formation of Pay Commission was approved on 16 January 2025
This commission will assess adjustments in salary and pension. And will focus on important subjects like fitment factor and minimum veg standards. Millions of employees and pensioners are waiting for the implementation of 8th pay-work. He hopes that it will have changes according to today’s economic reality.
On 16 January 2025, Prime Minister Narendra Modi and Union Cabinet approved the formation of the 8th Pay Commission. However, the government has not yet published the terms of reference for the 8th Pay Commission. However, in the budget 2025, several proposals have been kept for taxpayers. At the same time, the costs to the Central Government have not been mentioned in implementing the 8th Pay Commission in the budget documents.
Proposals
- Advocates, who proposed on behalf of the staff, have suggested the government to merge several levels. Their suggestions include merging these levels- with Level 1 to Level 2, Level 3 with Level 4 and Level 5 with Level 6. These advocates suggest to increase salary of employees with lower pay scale and promote career growth opportunities.
- The target of this merger is to remove existing increment inequalities and create more transparent salary structure. Together these levels are expected that employees will experience more growth. Because it will reduce stagnation and increase financial improvement over time.
- Currently the monthly basic salary of Level-1 employee is Rs 18,000. At the same time, Level-2 employee gets Rs 19,900. After the merger, Level-1 employee can get more benefits. Because the new salary structure will start from this level. Apart from this, it is expected from the 8th Pay Commission that it can implement the fitment factor up to 2.86. This is estimated to increase estimated revised basic pay to Rs 51,480.
Fitment factor
The Fitment Factor is an important aspect of the Pay Commission, which serves as a standard multiplyer to re -determine salary and pension at all levels. This seismat guarantees frequent salary growth, whether the employee’s grade or salary band is anything.
With the introduction of the 7th Pay Commission, there was adequate growth in the minimum basic salary, which increased from Rs 7,000 to Rs 18,000 thanks to the 2.57 fitment factor. Similarly, there was a change in pension, which increased from Rs 3,500 to Rs 9,000. Apart from this, the Commission started a new health insurance scheme for central government employees.
However, the official fitment factor for the 8th Pay Commission has not yet been revealed. Estimates suggest that it can be around 2.5–2.86. This can lead to a lot of growth in salary and pension. The salary can increase from Rs 40,000 to Rs 1,00,000 on a potentially applied multiplyer and grade pay basis.
