Copyright informalnewz
8th Pay Commission: The 8th Pay Commission process has begun, and discussions are raging regarding the fitment factor. This factor determines the salary and pension increase. If the fitment factor is 2.0, the basic salary could double, but DA and other calculations also play a significant role. 8th Pay Commission: There’s a lot of discussion among central government employees these days about the 8th Pay Commission. As always, the biggest question is the fitment factor, as it determines the overall salary increase. Many are wondering if salaries can truly double this time? Let’s understand the full picture. 8th Pay Commission Approves ToR The central government has approved the Terms of Reference (ToR) for the 8th Pay Commission. Former Supreme Court judge Justice Ranjana Prakash Desai has been appointed its chairperson. The commission will now prepare its report and submit it to the government in approximately 18 months. The cabinet will then approve it. What is the fitment factor and why is it important? In simple terms, the fitment factor is the multiplier used to increase basic salary and pension. In the 7th Pay Commission, this factor was 2.57. Information on its value in the 8th Pay Commission is not yet available. This simply means that the higher the fitment factor, the greater the salary increase. How is the new salary determined? The Economic Times quoted Manjeet Singh Patel, president of the All India NPS Employees Federation, as saying that if an employee’s basic salary is ₹35,000 and the new fitment factor is 2.11, then ₹35,000 × 2.11 = ₹73,850. Allowances like HRA also increase based on this. Payroll expert Ramachandran Krishnamurthy explains that HRA increases immediately, while fixed allowances like TA are revised later. What role does DA play in this? DA doesn’t directly determine the fitment factor, but its rate is an important parameter. If the current DA is 58% and reaches 70% by the time it is implemented, the fitment factor can be further increased by adding the growth factor and family units. The fitment formula is made up of multiple factors. Can salaries really double? The fitment factor affects basic and HRA, but DA resets to zero as soon as the new Pay Commission is implemented. Therefore, the total in-hand salary increase is usually around 20–25%. However, if the fitment factor is 2.0, ₹50,000 basic would become ₹1,00,000. But this doesn’t mean the full CTC will double. Will the same factor apply to all employees? The 7th Pay Commission applied a uniform 2.57 factor across all levels. But this time, it’s likely that lower-level employees will receive a slightly higher factor to reduce pay disparity. Currently, there are 18 pay levels at the Centre. Some levels may also be merged. What will be the impact on pensioners? Pensioners’ basic pensions are also increased by the same factor. If someone is receiving a pension of ₹30,000 and the factor is 2.0, the new pension could be ₹60,000, provided the Cabinet approves it. The fitment factor is an important means of increasing salaries, but it involves several factors, such as DA, growth factor, and family unit. Salaries may double, but it’s important to understand the full picture to ensure that expectations and reality are aligned. Read More: Jio offering unlimited internet for less than Rs 100, check the plan before recharging.
