Good news is coming for central employees and pensioners! There are positive indications about the 8th Pay Commission, which is going to increase the basic salary and pension of the employees.
If you do a government job or have retired, then this news is related to your pay scale and future financial stability. Let’s know the main things of the 8th Pay Commission and the benefits of it.
How much salary will increase from 8th pay commission?
After the implementation of the 8th Pay Commission, the minimum basic salary of employees can increase from ₹ 34,560 to ₹ 51,480.
Estimated increment:
Minimum Basic Salary: ₹ 18,000 ➝ ₹ 34,560 (92% increase)
Maximum Basic Salary: ₹ 18,000 ➝ ₹ 51,480 (186% increase)
After this increase, the gross salary of employees will also increase significantly.
Base of increasing salary: What is fitment factor?
The fitment factor is the mainstay of increasing salary in any pay commission.
Difference between 7th and 8th Pay Commission:
The Fitment Factor in the 7th Pay Commission was 2.57, causing the basic salary to ₹ 7,000 to ₹ 18,000.
The fitment factor in the 8th Pay Commission may increase from 1.92 to 2.86.
Calculation of new pay scale (based on fitment factor):
₹ 18,000 x 1.92 = ₹ 34,560 (minimum increase)
₹ 18,000 x 2.86 = ₹ 51,480 (maximum increase)
This means that employees’ salary may increase by at least 92% and a maximum of 186%.
Aykroyd formula will be fixed with salary
The government prepares the recommendations of the Pay Commission based on Aykroyd Formula.
What is Aykroyd Formula?
This formula amends the salary keeping in mind the inflation rate, living costs and the current market status.
Along with increasing inflation, salary will also increase in the same proportion.
This is considered an effective way to maintain the financial stability of the employees.
This time also this formula will be used under the 8th Pay Commission.
When will the 8th Pay Commission apply?
The duration of the 7th Pay Commission is up to 2025.
The 8th Pay Commission is expected to be implemented in 2026.
If applied from January 2026 and delays, employees will get salary with arrears.
How many people will benefit?
With the implementation of the 8th Pay Commission, about 1 crore 15 lakh families will get direct benefit.
Profit Group:
50 lakh central employees
65 lakh pensioners retired employees
This will also directly affect the economy of the country, because when the salary of so many people increases, the market will come and the speed of development will increase.
What are the benefits of the 8th Pay Commission?
Employees benefit:
There will be bumper increase in salary.
There will be automatic improvement in salary according to inflation.
Pension will also be found more after retirement.
Pensioners benefit:
There will be a major increase in the pension of retired employees.
Dearness allowances (DA) and other allowances will increase.
Benefits the economy:
People will have to spend the ability to spend.
The increase in demand will increase the market and trade.
Real estate, automobile and retail sector will get a big boost.
