New Delhi: Discussions around the 8th Pay Commission and changes in central government employees’ salaries have intensified. The government approved the formation of this commission on January 16, 2025. The key question now is how much salary hike can be expected from its recommendations and what the new minimum wage will be.
What is the Fitment Factor and Its Impact?
The fitment factor is a crucial calculation used to revise the basic salary and pension of government employees. It acts as a multiplier that determines the new salary structure. The 7th Pay Commission had set the fitment factor at 2.57, which raised the minimum salary from Rs 7,000 to Rs 18,000.
Recently, the National Council-Joint Consultative Machinery (NC-JCM) has demanded that the government consider a fitment factor of at least 2.57 or higher. If this demand is met, government employees can expect a significant salary increase.
How Much Will the Salary Increase with a 2.57 Fitment Factor?
If the 8th Pay Commission adopts a 2.57 fitment factor, the minimum salary will rise from Rs 18,000 to Rs 46,260 per month. Similarly, the minimum pension will increase from Rs 9,000 to Rs 23,130.
What Are the Possible Minimum and Maximum Fitment Factors?
Reports suggest that a fitment factor of 2.86 has also been proposed for the 8th Pay Commission. However, former Finance Secretary Subhash Garg called this an unrealistic expectation. He suggested that the government might approve a maximum fitment factor of 1.92.
If a 1.92 fitment factor is approved, the minimum salary will increase from Rs 18,000 to Rs 34,560, reflecting a 92% hike. While this is lower than other proposals, it still represents a significant raise.
Employee Demands on Fitment Factor
According to NC-JCM Secretary (Staff Side) Shiv Gopal Mishra, the fitment factor should be at least 2.57 or more. He emphasized that the existing calculation methods are outdated and do not reflect the current needs of employees.
When Will the 8th Pay Commission Be Formed?
Reports indicate that the central government may announce the formation of the 8th Pay Commission by April 2025. The commission will consist of a chairman and two other members, whose names will be disclosed soon. Once formed, it may take around a year for the recommendations to be implemented.
What Do Media Reports Say?
According to media reports, the government is likely to proceed cautiously with implementing the Pay Commission’s recommendations, as they could significantly impact government expenditure. However, considering employee demands, the government may find a balanced solution to satisfy all stakeholders.
The 8th Pay Commission’s recommendations could bring a substantial change in government employees’ salaries and pensions. However, it remains to be seen what decision the government takes regarding the fitment factor. While employees are hopeful for a significant salary hike, the government faces the challenge of maintaining financial balance.
