The central government has recently proposed the 8th Pay Commission. Under this, the pension and allowances of more than 1 crore government employees and pensioners are going to increase. Then the question arises that how much will the monthly income of central employees and pensioners increase after the announcement of the 8th Pay Commission? A formula has come out from which it can be guessed how much the salary of the employees can increase.
It is expected that like the 7th Pay Commission, under the 8th Pay Commission, acute formula will be used to increase the salary and pension of central employees keeping in mind the current economic conditions.
What is the formula of acroid?
This sutra is that this scheme, produced by Dr. Wales Acroid, was created to determine the minimum cost of living. It was suggested in this formula that the salary should be calculated on the basis of nutritional requirements of the average employee. In developing this formula for appropriate salary, Dr. Acroid focused on the basic needs of the employees such as food, clothes and housing. The 15th Indian Labor Council (ILC) adopted this formula in 1957 to determine the minimum wage for an employee, his spouse and two children.
7th Pay Commission and Acroid Formula
According to a report by Financial Express, the 7th Pay Commission used the minimum basic salary for central government employees from Rs 7,000 to Rs 18,000 using the acroid formula.
Nearly a decade ago, the 7th Pay Commission implemented a fitment factor of 2.57 to update the salaries and pension of the Central Government employees and pensioners. This salary based on fitment factor and acroid formula is effective since the implementation of the recommendations of the 7th Pay Commission in Matrix 2016.
On the basis of this formula, how much will the salary increase under the 8th Pay Commission will increase?
It is believed that the acroid formula will also be adopted under the 8th Pay Commission, so that it can be ensured whether the salary of government employees is appropriate according to today’s inflation or not? Reports suggest that the government may consider a fitment factor between 1.92 and 2.86. If the high end of this limit, 2.86, is selected, the minimum original salary for government employees will be potentially increased to Rs 25,000. 51,480, which is currently Rs. More than 18,000. Apart from this, pension can be increased from Rs 9,000 to Rs 25,740.
Fitment factor
Salary and pension increase is calculated by multiplying the fitment factor by current minimum salary or pension amount. What percentage will increase in salary under the 8th Pay Commission? This is not clear yet. The central government may soon announce the formation of the 8th Pay Commission, with one chairman and two members.
