8th Pay Commission Salary Hike: How much will the salary of central employees increase, when will the 8th Pay Commission be implemented, know the latest update

News, Digital Desk- The government may soon announce the formation of the Eighth Pay Commission. The process of preparing the terms of reference and work order for the formation of the commission is underway. 

This time the increase in the salary of the employees will largely depend on the fitment factor, which is expected to be between 1.90 and 1.95. This is likely to lead to a good increase in the salary of the employees.

The government had announced the formation of a commission in January, the process of appointment of its chairman and members is underway. Since then, speculations about the fitment factor have increased. 

Some employee organizations and officials believe that this time it will be 2.86. They argue that in view of rising inflation, the government will revise the fitment factor.

How does the fitment factor work?

Actually, the basic salary increases on the basis of the fitment factor. For example, if the basic salary of an employee is Rs 20,000, then it will be multiplied by the fitment factor 2.86. 

On this basis, the basic salary can increase to Rs 57,200, but sources say that the fitment factor will remain below 2.0. The government can apply a fitment factor of 1.90 to 1.95. 

Sources also say that this time the government can bring a separate formula to adjust the dearness allowance by keeping the fitment low.

How much increase in the last pay commission-

In the 6th Pay Commission of 2006, the fitment factor was set at 1.86. In the 7th Pay Commission of 2016, the fitment factor was 2.57%, but the actual increase in the pay scale was only 14.2%. 

Because, most of the fitment of the 7th Pay Commission was spent only on adjusting the Dearness Allowance. Whereas after the recommendations of the 6th Pay Commission, the basic salary was increased by about 54%.

It may take time to be implemented-

Despite the central government announcing the formation of the Eighth Pay Commission in January, it has not been constituted yet. Looking at past records, it takes 18 to 26 months for the final report to come after the formation of the commission. 

The report of the Sixth Pay Commission came in 18 months, while the Seventh Pay Commission was approved on 24 September 2013 and the report came on 19 November 2015. This delay indicates that the recommendations of the Eighth Pay Commission are likely to be implemented only by 2027.

What is a letter of reference-

This is a kind of recommendation letter, through which the reference and conditions related to any subject are decided. A recommendation letter will also be issued regarding the formation of the Pay Commission.