8th Pay Commission Approved by Union Cabinet; Announcement Pending

8th_pay_commission_approved_by_union_cabinet_announcement_pending

8th Pay Commission Approved by Union Cabinet; Announcement Pending

On January 16, the Union Cabinet approved the establishment of the 8th Pay Commission to revise the salaries of central government employees. However, an official announcement regarding its specific terms and implementation is still awaited. Currently, salaries for central employees are based on the recommendations of the 7th Pay Commission, which was implemented in 2016. Many government employees are anxiously awaiting the release of the Terms of Reference for the new commission.

8th_pay_commission_approved_by_union_cabinet_announcement_pending

Understanding Fitment Factor

A critical component in determining salary hikes under any Pay Commission is the fitment factor. This factor indicates how much the revised salary will increase based on the current base salary. Essentially, it acts as a multiplication unit used to adjust the salaries and pensions of government employees.

For instance, a fitment factor of 2.57 signifies a 157% increase in salary. Under the 7th Pay Commission, this fitment factor raised salaries from ₹7,000 to ₹18,000. The revision of salary amounts is directly tied to the fitment factor, which serves as a multiplier applied to the current basic pay. The existing fitment factor of 2.57 has been instrumental in determining the salary structure since the 7th Pay Commission, which is set to conclude on December 31, 2025. Despite the approval of the 8th Pay Commission, no official announcements have been made yet.

Historical Context

Since India gained independence in 1947, there have been seven Central Pay Commissions, with a new commission typically established every ten years to facilitate salary revisions for central employees and pensioners.

Expected Salary Hikes in the 8th Pay Commission

According to preliminary reports, the 8th Pay Commission may introduce significant increases in basic pay across various levels. For Level 1 employees, basic pay could rise from ₹18,000 to approximately ₹51,480. For Level 2, which includes lower division clerks, the hike could reach ₹56,914. Level 3 employees might see their salaries increase from ₹21,700 to around ₹62,062. As one moves up the pay scale, the increases become more pronounced, with Level 10 employees, comprising Group A officers, potentially earning up to ₹1,60,446.

In conclusion, while the approval of the 8th Pay Commission offers hope for better remuneration for central government employees, the details surrounding its implementation and the exact changes in salary structure remain to be officially communicated.

Source: https://www.hindustantimes.com/business/8th-pay-commission-formal-announcement-awaited-what-is-fitment-factor-and-how-does-it-affect-salary-101749809481295.html

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