As the 7th Pay Commission’s term is moving towards the expiry, the enthusiasm among the central government employees and pensioners is increasing with the 8th Pay Commission. Recently, an important information related to this has been revealed, in which possible changes have been discussed regarding fitment factor and dearness allowance (DA). These changes will directly affect the basic salary and pension of millions of employees.
What is a fitment factor?
The fitment factor is the calculation system that is used by the Pay Commission to adjust the current salary of employees to the new pay structure.
- It is decided keeping in mind the cost of inflation and living.
- The minimum basic salary is determined only through the fitment factor and further salary structure is formed on the same basis.
There may be two major changes in the 8th Pay Commission
1. Possible increase in fitment factor
- Currently, the fitment factor in the 7th Pay Commission is 2.86, due to which the minimum wage was increased from ₹ 7,000 to ₹ 18,000.
- Now there is a possibility of fitment factor 2.86 or more in the 8th Pay Commission.
- If this happens, the minimum basic salary can increase from ₹ 18,000 to ₹ 51,480.
- This will not only increase the basic salary, but will also increase dearness allowance and other allowances.
2. Change in the role of DA (dearness allowance)
- DA ie Dearness Allowance is given to balance the inflation level of that time in salary.
- It is one percent of the basic salary, which the government revises every 6 months.
- Before the 7th Pay Commission came into force, DA had reached 125%, which was merged into the new basic salary.
- The same change is likely to happen in the 8th Pay Commission, that is, the new basic salary will be decided by mixing the old salary and DA.
How is the new salary decided after DA?
- At the time of salary amendment, a basic figure is fixed by adding the old basic salary and existing DA.
- A new fitment factor is applied to this base.
- When the new pay commission is implemented, DA is started from zero, as it has already been added to the original salary.
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The post big news about the 8th Pay Commission: There may be a big change in salary and pension, know the role of fitment factor and DA is first appeared on News India Live | Breaking India News, The Indian Headline, India Express News, Fast India News.
