8th Pay Commission salary news: Millions of central government employees across the country are eagerly awaiting the implementation of the new pay commission. The implementation of the new pay commission will result in a significant salary increase. Let's try to understand the potential increase.

Central employees are eagerly waiting for the implementation of the 8th Pay Commission . However, the most discussed topic in the meantime is the fitment factor. Many government employees believe that if the fitment factor is 2.5 or 2.8, their salary will increase by 150% or more. However, this is not true. Why does the fitment factor not mean a direct increase in salary? The fitment factor is a multiplier that is applied to your current basic salary to determine your new basic salary under the changed pay structure. However, this time a good increase in salary is expected under the new pay commission. Let us understand.

DA is merged into the new pay commission

Before the new pay commission was implemented, employees were already receiving dearness allowance (DA). This is an inflation-linked component that increases every six months. By the time the new pay commission is implemented, DA often reaches 50%, 100%, or 125% of the basic pay. When the new pay structure is implemented, the accumulated DA is first added to the basic pay and then the fitment factor is applied, and only the remaining portion becomes the actual increase.

Under 7th Pay Commission: Fitment Factor: 2.57

DA reaches 125% when combined with basic pay

Example: Basic Pay: Rs 7,000

DA at 125%: Rs 8,750

Total already available: Rs 15,750

After multiplying by 2.57×: New Basic: Rs 18,000

Actual increase: Rs 18,000 – Rs 15,750 = Rs 2,250

The actual increase was about 14.3%.

How much did the salary increase in which pay commission?

2nd Pay Commission Hike: 14.20%

3rd Pay Commission Hike: 20.60%

4th Pay Commission Hike: 27.60%

5th Pay Commission Hike: 31.00%

6th Pay Commission Hike: 54.00%

7th Pay Commission Hike: 14.30%

What to expect from the 8th Pay Commission

Current Status: Current Basic Pay (Level 1): Rs 18,000

Current DA: 58%

The implementation of the 8th Pay Commission is expected to take at least 18–24 months. This means there will be approximately four more DA revisions. Let's assume that the DA reaches approximately 68% before implementation:

68% of Rs 18,000 = Rs 12,240

Total salary before 8th CPC: Rs 18,000 + Rs 12,240 = Rs 30,240

Now if the fitment factor is 2.57 (same as 7th CPC), then what is the total increase in salary?

Rs 18,000 × 2.57 = Rs 46,260

Actual increase: Rs 46,260 – Rs 30,240 = Rs 16,020

53% real increase

Scenario 2: Fitment factor 2.86

Rs 18,000 × 2.86 = Rs 51,480

Actual increase: Rs 51,480 – Rs 30,240 = Rs 21,240

70% real increase

This would be a significant increase and close to what the employee unions are demanding.

 PC:Times Now