Central employees are currently receiving salary under the 7th Pay Commission which is applicable from 2016. In every pay commission, the salary and pension of the employees are revised according to inflation. In such a situation, government employees are expecting a huge increase in salary from the 8th Pay Commission. Let us know how much the salary of the employees can increase after the implementation of the 8th Pay Commission.
The central government had announced the approval of the 8th Pay Commission last month. Since then, speculations are being made about what will be the fitment factor in the 8th Pay Commission and how much will be the salary increase of central employees. Some experts say that the minimum basic salary will increase by 108-186 percent. At the same time, former Finance Secretary Subhash Chandra Garg had claimed in an interview that this increase will be limited to 20 to a maximum of 30 percent.
This has left more than 1 crore central employees and pensioners of the country confused about how much the salary will increase. Let us understand how much the salary can actually increase.
What is the 8th Pay Commission?
Central employees are currently getting salary under the 7th Pay Commission, which is applicable from 2016. In every pay commission, the salary and pension of the employees are revised according to inflation. In such a situation, government employees are expecting a huge increase in salary from the 8th Pay Commission.
Fitment factor of 8th Pay Commission
Former Finance Secretary Subhash Chandra Garg said in an interview that the government can approve a fitment factor between 1.92 to 2.08 in the 8th Pay Commission. However, Shiv Gopal Mishra, Secretary of NC-JCM (National Council – Joint Consultative Machinery), believes that this fitment factor should be 2.86. The fitment factor is a coefficient, which shows how many times the minimum basic salary will increase.
How much will be the salary hike?
If we assume the 8th Pay Commission to be implemented in January 2026, then the dearness allowance (DA) at that time will be around 60 percent.
Current minimum salary (under 7th Pay Commission) = ₹18,000
Salary after adding DA = ₹28,800
Now let’s see the possible salary under 8th Pay Commission:
- At 1.92 fitment factor:
- New minimum salary = ₹34,560 (about 20% increase)
- At 2.08 fitment factor:
- New minimum salary = ₹37,440 (about 30% increase)
- At 2.86 fitment factor:
- New minimum salary = ₹51,480 (about 80% increase)
If we exclude DA, then the increase in salary will be this much:
- 92% increase on 1.92 fitment factor
- 108% increase on 2.08 fitment factor
- 186% increase on 2.86 fitment factor
This means that after the implementation of 8th Pay Commission, there is a high possibility of 20 to 30 percent increase in salary. However, it will also depend a lot on the economic health of the government and the country. Accordingly, there can be more or less increase in the minimum salary.
Benefits of 8th Pay Commission
- Employees’ salary and pension will increase.
- Increased salary will increase spending capacity.
- Increased purchasing power will also benefit the economy.
Challenges from the 8th Pay Commission
- There will be additional pressure on the government treasury.
- Salary hike may have an impact on inflation.
- Salary gap may increase in the private sector.
