The recent clearance granted to the 8th Pay Commission by the Central Government will lead to radical alterations in the pay structure and pensions of Central Government employees and pensioners. Once the new pay commission has cabinet approval, its implementation is anticipated to commence next year.
Meanwhile, the salary structure of employees across India still rests upon the recommendations of the 7th Pay Commission applicable since 2016. This article analyzes what the 8th Pay Commission means for employees, from peons to clerks, and how fitment factor will serve as a real determinant of changes in their salaries.
What is Fitment Factor?
Fitment factor is primarily an important multiplier used to compute the new salary by multiplying it with the existing basic pay. Under the 7th Pay Commission, the fitment factor was fixed at 2.57, which in effect enhanced the minimum salary of Level 1 employees from ₹7,000 to ₹18,000. This, along with allowances, has brought the total salary to around ₹36,020, keeping the basic pay at ₹18,000.
The discussions are now on for a new fitment factor in the 8th Pay Commission. Most suggestions come from employee associations and NC-JCM, who suggest a fitment factor imposition of 2.86; such a proposal will certainly be a major hike in basic salary for employees.
How Much Salary Increase?
If fitment factor 2.08 is implemented, the basic minimum pay of the central employees could be raised to the level of ₹37,440 from ₹18,000, while the pension could be raised from ₹9,000 into ₹18,720. If the fitment factor comes to be increased up to 2.86, there could be an unbelievable jump of 186% in pay; the minimum salary will move to ₹51,480, and the pension will move to ₹25,740.
Expected Salary Revisions Under the 8th Pay Commission
Here’s a breakdown of how salaries could change for various positions:
- Peon/Attendant (Level 1):
Current Salary: ₹18,000
Revised Salary: ₹51,480
Increase: ₹33,480 - Lower Division Clerk (Level 2):
Current Salary: ₹19,900
Revised Salary: ₹56,914
Increase: ₹37,014 - Constables/Skilled Workers (Level 3):
Current Salary: ₹21,700
Revised Salary: ₹62,062
Increase: ₹40,362 - Grade D Stenographer/Junior Clerk (Level 4):
Current Salary: ₹25,500
Revised Salary: ₹72,930
Increase: ₹47,430 - Senior Clerk/Technical Staff (Level 5):
Current Salary: ₹29,200
Revised Salary: ₹83,512
Increase: ₹54,312
When Will the 8th Pay Commission be Implemented?
The 7th Pay Commission, constituted in 2014, submitted its report in November 2015, and came into force in 2016. The government announced that the 8th Pay Commission would be constituted in 2025 and that implementation of the recommendations could be commenced in January 2026.
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