Big news for central government employees. The central government has given the green light for the 8th Pay Commission, sparking a lot of chatter among central employees about what the new minimum basic salary will be. There’s a lot of curiosity about how much the minimum basic salary will change once the 8th Pay Commission kicks in. Plus, it looks like retired employees might see a boost in their pensions too. Let’s dive into the details.
So, how much can we expect the minimum basic salary to go up?
Experts suggest that the fitment factor for the 8th Pay Commission could range from 2.6 to 2.85, potentially bumping up the minimum basic salary by 25-30%. Right now, that salary sits at Rs 18,000 a month, but if the fitment factor hits 2.85, we could be looking at a new salary between Rs 40,000 and Rs 45,000 a month.
What’s this fitment factor all about?
The fitment factor is basically a multiplier used to figure out the salaries and pensions for government employees. It takes into account things like inflation, the economic needs of workers, and the government’s financial situation.
The fitment factor established by the 7th Pay Commission was set at 2.57, which determined the minimum basic salary for employees at Rs 18,000. In contrast, the fitment factor for the 6th Pay Commission was 1.86.
What is the potential increase in pension?
There is a possibility of an increase in the pensions of central employees. Should the government endorse a fitment factor of 2.86 in the 8th Pay Commission, pensions could rise by approximately 186%. Consequently, this would result in an increase of Rs 9,000, bringing the total pension to Rs 25,740 per month.