Central government employees may be in for a substantial pay hike, with multiple media reports suggesting a potential 186% increase in minimum salaries ahead of the official 8th Pay Commission announcement. Currently, under the 7th Pay Commission, central government employees receive a minimum basic pay of Rs 18,000 per month, marking a substantial rise from the Rs 7,000 minimum pay provided under the 6th Pay Commission.
Shiv Gopal Mishra, Secretary of the National Council of Joint Consultative Machinery, anticipates that the new Pay Commission will introduce a fitment factor of “at least 2.86”, which will have a substantial impact on salary and pension revisions.
According to media reports, if the government approves the proposed 2.86 fitment factor, minimum salaries could jump by a whopping 186% to Rs 51,480, a significant increase from the current Rs 18,000. A fitment factor of 2.86 would translate to a substantial pension increase for central government employees, with monthly pensions soaring from Rs 9,000 to Rs 25,740.
8th Pay Commission: What Is The Fitment Factor?
The fitment factor serves as a crucial mechanism to ensure that salary increases are applied uniformly across all pay grades. This systematic adjustment helps preserve the purchasing power of Central government employees, enabling them to keep pace with rising expenses and maintain their standard of living.
The 7th Central Pay Commission recommended a multiplication factor of 2.57. For the first level of the matrix, the starting salary is Rs 18,000, which corresponds to the initial salary of Rs 7,000 in Pay Band 1.
When To Expect?
Meanwhile, with the 7th Pay Commission nearing the end of its 10-year term, anticipation is building around the establishment of the 8th Pay Commission. Although speculation is rampant, the government has not made any formal declarations regarding the timeline for setting up the new Pay Commission.
However, media reports suggest that the government may announce the formation of the 8th Pay Commission in the upcoming Union Budget for 2025-26.
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