8th Pay Commission: Central employees and pensioners are eagerly awaiting the implementation of the Eighth Pay Commission. The government announced the 8th Pay Commission in January 2025. The Eighth Pay Commission has been announced, but there is no update on its formation.
A few days ago, DA and DR were increased by 3 percent under the Seventh Pay Commission. Consequently, the DA of government employees increased from 55 percent to 58 percent. If the government implements the Eighth Pay Commission, changes will be made to employees’ salaries, pensions, and allowances.
What is the fitment factor?
The fitment factor is the multiplier used to multiply an employee’s current basic salary to determine their new basic salary. The 7th Pay Commission implemented a fitment factor of 2.57. For the 8th Pay Commission, the fitment factor is expected to be between 1.92 and 2.86, based on which the basic salary is expected to increase.
How much will the salary increase with 1.96 fitment factor?
If the fitment factor is assumed to be 1.96, the basic pay of Level-1 employees will increase from Rs 18,000 to approximately Rs 35,280.
Formula to calculate new basic salary
Old Basic Pay × Fitment Factor = Revised Basic Pay
This formula will be applicable for salary revision of all employees from Level 1 to Level 18.
Example: Suppose the current salary of a Level-9 Central Government employee is as follows.
Basic Salary: Rs 53,100
Dearness Allowance (DA – 58%): Rs 30,798
House Rent Allowance (HRA – 27%, in metro cities like Delhi): Rs 14,337
Total Current Salary: Rs 98,235
After revision under 8th Pay Commission
New Basic Pay: Rs 1,04,076
DA reset (starts at 0%)
HRA (27% of new basic): Rs 28,101
Total Salary: Rs 1,32,177
When will the new pay commission be implemented?
According to government rules, the new Pay Commission should be implemented from January 1, 2026. If the Commission’s decisions are announced by July 2027, employees are expected to receive arrears from January 2026 to July 2027. Receiving 18 months’ arrears will benefit millions of employees and pensioners. The Eighth Pay Commission will benefit 5 million central government employees and 6.5 million pensioners. It will also include defense personnel and retired employees.
The post 8th Pay Commission: Why is the fitment factor important for central govt employees? Know the answer appeared first on Times Bull.
from Times Bull https://ift.tt/DNw84Gx
0 Comments