29 lakh will get extra… if this decision taken in the 8th Pay Commission

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8th Pay Commission: The important meeting of the 8th Pay Commission held at Jaipur is over and now the next meeting is scheduled to be held in Chennai on September 7 and 8. In the Jaipur meeting, a representative body of government employees and pensioners discussed in detail several important issues before the Pay Commission. However, the most special and debatable issue in this entire discussion has been the rate of annual increment received every year. All the employee representatives present in the meeting have strongly demanded to increase the increment rate.

Currently getting 3% increment, demand to do 7%

According to the existing rules, increments of 3 percent per annum are given to government employees and pensioners. However, employees and pensioners say that this 3 percent increase is too low considering the ever-increasing inflation. The government should fix the rate of annual increment at least 7 percent to get adequate relief against inflation. An official demand of 7 percent increment every year has been put forward by the ‘All India New Pension Scheme Employees Federation’ (AINPSEF).

How much will the salary increase if you get 7% increment? (calculation)

If this demand of 7 per cent increment is accepted by the government, there will be a huge jump in the salary of employees and the pension amount of pensioners:

Basic Salary Calculation:

Assume that the basic salary of a Level-8 employee is ₹47,600. If a fitment factor of 2.15 is fixed in the 8th Pay Commission, the revised basic pay will increase ₹1,02,340 will be done (Also adding DA and HRA will increase the total salary).

In 5 years the annual salary will increase as follows:

If a fixed increment of 7% per annum is given on this revised basic salary:

  • First year: ₹12,28,080

  • Second year: ₹13,14,046

  • Third year: ₹14,06,029

  • Fourth year: ₹15,04,451

  • Fifth Year: ₹16,09,762

Employees will get an additional direct benefit of ₹29 lakh

Similarly if compounded continuously at the rate of 7 per cent, the annual salary can rise to ₹1,69,67,703 by the 10th year. That is, just by increasing the increment rate from 3% to 7%, employees can get an additional direct economic benefit of around ₹29 lakh over a period of 10 years from salary alone.

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