Fitment Factor Hike News: Fitment factor will increase from 2.28 to 2.86, this will be the increase in salary and pension of government employees
Fitment Factor Hike: Big good news for central employees. After the announcement in January 2024, the 8th Pay Commission is expected to be formed soon. However, the biggest question is whether the salary increased by 2.86 times the fitment factor will be able to compete with today's rising inflation...
News, Digital Desk- ( 8th Pay Commission) After the announcement in January 2024, the 8th Pay Commission is expected to be constituted soon. Its main objective is to review the salary, allowances and pension of more than 1 crore central government employees and pensioners.
This is likely to give them great relief. However, the biggest question is whether the salary increased by 2.86 times the fitment factor will be able to compete with today's rising inflation.
What have we learnt from previous pay commissions?
In India, there has been a tradition of introducing a new pay commission every 10 years. The Sixth Pay Commission in 2006 and the Seventh Pay Commission in 2016 increased the minimum basic pay from ₹2,750 to ₹7,000 and then to ₹18,000. There has been a significant increase in the salaries and allowances of government employees through these commissions.
Why has inflation become a big challenge today?
- The economic condition of the country has changed a lot in the last 8 years.
- Food Products: Prices of wheat, rice, oil and vegetables are continuously increasing.
- Education: Fees of private schools have increased by 80% in the last 10 years.
- Rent: Rents have increased by 40-60% in cities like Delhi, Jaipur, Bhopal and Lucknow.
- Fuel: Petrol prices have crossed Rs 100 from Rs 65.
- Health expenses: Despite CGHS cover, expenses range from Rs 3,000 to Rs 10,000 per month.
How much can the salary increase be?
According to the news, the Eighth Pay Commission (8th pay commission news) can fix the fitment factor from 2.28 to 2.86 times. If it is considered 2.86, then if the basic salary of an employee is currently Rs 20,000, then it can increase to Rs 57,200. That is, a total increase of 186% is possible.
When will the 8th pay commission be implemented?
The government expects a final decision on the salary structure, allowances and pension in 2025, although no official date has been announced yet. Employees also expect that the fitment factor will be the same at all levels, bringing more simplicity to the pay system.
On behalf of the employees, Shiv Gopal Mishra, secretary, NC-JCM, said that the Terms of Reference is expected to be approved by the government soon.
At present, lakhs of employees are waiting for the Eighth Pay Commission (8th pay commission latest update) to give them some solid relief in the era of inflation.