8th Pay Commission: Salary will increase up to 283 percent, increase in pension is also certain; Will the demands be met?

• Good news for employees
• Salary will increase up to 283 percent
• What is ‘fitment factor’?

8th Pay Commission: Formal discussions between the 8th Pay Commission and the employee unions have been concluded this week. In which unions had demanded a minimum wage of ₹69,000 based on 3.83 times ‘fitment factor’, if the demand is accepted, it will result in a 283 per cent increase in the minimum wage of the employees. That is exactly how much will increase”text-align: justify;”> Reliance Share: Earnings of 139655.8 crores in 4 days! Shares of Mukesh Ambani’s Reliance soar, investors flock

Currently, under the 7th Pay Commission, employees get a basic pay of at least ₹18,000 per month; This amount was an increase from the figure of ₹7,000 fixed by the 6th Pay Commission. During a meeting held in New Delhi from April 28 to 30, the National Council demanded a pay hike, changes in pay structure, and revised pensions and allowances for around 3.6 lakh central government employees.

Good news for employees

The ‘staff side’ of NC-JCM has demanded a ‘fitness factor’ of 3.83. This figure is 126 ‘basis points’ higher than the fitment factor of 2.57 recommended under the 7th Pay Commission. If the demand for a fitment factor of 3.83 is accepted, it will result in an increase of 283 percent in the wages of the employees.
This means that if an employee’s current Basic Salary is Rs.18,000, it will increase to approximately Rs.69,000; Moreover, mid-level wages across all pay ranges may also see a significant increase.

What is ‘fitment factor’?

‘Fitment factor’ is a multiplier, which is used to determine the new basic pay or pension of government employees and pensioners. Based on this fitment factor, if your current basic pay is ₹18,000 and the proposed fitment factor is 3.83, your new basic pay will be ₹18,000 × 3.83 = ₹68,940. Higher the fitment factor, more will be the increase in wages of the employees and the effect of this increase will be reflected in their pension as well.

Why the demand for salary ₹69,000?

The employee unions have proposed fixing the minimum basic pay at ₹69,000. Earlier, under the 7th Pay Commission, minimum wages were calculated based on a family of three members i.e. husband, wife and two children who together were considered as two units. Now, however, organizations say that this component of the family should also include elderly parents; As a result, the size of the family will increase to five members. This new wage demand has been put forward based on the estimated expenditure for a family of five members.

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