Among the central government employees, the 8th Pay Commission is going on at full swing. The pay revision is based on the fitment factor thus a new hope in the economy is being realized by the employees. Not only will this raise their income but their standard of living shall get better. Let us learn what has been going on to this exciting change and what it will do to your salary.
What Is Fitment Factor?
A Pay Commission has introduced the fitment factor which is a multiplier to be applied to restructure the basic pay. At 2.57 in the 7th Pay Commission, the minimum basic pay was raised to 18 000 rupees upwards that was 7 000 rupees earlier. This aspect will be more appealing in the 8 th Pay Commission.
Latest Pay Commission News On 8 Th Pay Commission
According to the latest news, the 8 th Pay Commission can take place as early as January 2026. The fitment factor being demanded by employee organizations is 3.0 to 3.5. Experts say it may be ranged between 1.92 to 2.86. The shift implies the rise in salary of employees by 20-40 percent.
The Effects On The Salary
Assuming the fitment factor as 2.86 then the basic salary of 10,000 rupees can go up to 28,600 rupees. Simultaneously, the salary of level-1 employees can swell by 40 percent and make their monthly pay close to Rs 25,200. The level-2 employees may acquire a gross salary of Rs 70, 506.
Pricing And Economic Implication
The effect of the increment of the fitment factor is not only felt on salary. It will boost the purchasing power of the employees that might land up to augmenting demand in the market. But the government will require extra budget to achieve this increment hence the taxpayers may be faced with a small burden. However, employee organisations feel that it will speed up the growth of the economy.
Expectations Of Employees
The employees are anticipating increase in fitment factor that will boost up their standard of living. The increase in salary is 20-25% in the previous commissions and this time there is a buzz of an increase up to 45%. Nonetheless, according to analysts, such a significant rise is not possible.
Path Ahead
Official declaration of the 8 th Pay Commission has not been done. Official notifications are recommended to be checked by employees. Whether this aspect of fitment factor will be accepted or not will be depended upon the economic policies and budget of the government. The employees will be the first ones affected by this change and it will have a significant impact on the economical state of the whole country as well.
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