A big news has come out for lakhs of central government employees and pensioners. Everyone’s eyes are now on the 8th Pay Commission. There is a lot of discussion going on that if the demands of the employee organizations are accepted, there will be a huge jump in the salaries of the employees which will directly impact their pockets. From DA merger to HRA and transport allowance, there are many proposals that are expected to increase the gross salary of level-1 employees by up to 65%. After all, what is all this mathematics and is the dream of the employees really going to come true? Let us understand.
Pile of demands in front of Pay Commission
Employee organizations have put forward many suggestions before the 8th Pay Commission. Their main objective is not only to increase the basic pay but also to change the entire salary structure according to inflation and current expenses. Organizations argue that amidst rising inflation, expensive cities and family responsibilities, the old salary structure is now proving inadequate. That is why emphasis is being laid on issues like DA, HRA, TA and family unit calculations.
New formula of fitment factor and family unit
The biggest demand is regarding ‘family unit calculation’. The All India NPS Employees Federation (AINPSEF) suggests increasing the current 3 family units to 4.4, including dependent parents. Experts believe that if this proposal is approved, the fitment factor may increase from 2.05 to 2.10. This is the factor that will lay the foundation for the new basic salary of the employees.
Huge increase expected in HRA and transport allowance
In this era of inflation, house rent is the biggest concern. Employee organizations have demanded 36%, 24% and 12% HRA for X, Y and Z category cities respectively, while some organizations have suggested it to be even higher (up to 40%). At the same time, there is also a demand regarding Transport Allowance (TA) that it should be updated according to inflation and TA of at least Rs 9,000 should be fixed for Level-1 employees. The organizations demand that TA should be directly linked to DA so that the allowances are automatically updated as inflation increases.
Will salary really increase by 65%?
If we look at the mathematics, at present the gross salary of a level-1 employee in an X category city is around Rs 37,080. If the government implements fitment factor of 2.10, 36% HRA and transport allowance of Rs 9,000, then this salary can increase to Rs 61,344. That means a direct jump of about 65% in the total salary. However, this is just a proposal now, the government has not taken a final decision on it.
Awaiting the government’s decision
Along with AINPSEF, many big organizations like NC-JCM Staff Side and AIDEF are standing with these demands for wage reform. Although the priorities of each organization may be different, the objective of all is the same – to provide relief to employees amid rising inflation. Right now the commission is considering the suggestions. How much will be the fitment factor or whether DA will be merged or not, the answer to all these questions will be available only after the final recommendation of the government. At present, these discussions have definitely awakened a new ray of hope among lakhs of government employees.
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