New Delhi. The eyes of lakhs of central government employees and pensioners are now fixed on the 8th Pay Commission. The Pay Commission process has moved forward after the Government approved the Terms of Reference (ToR). Now the biggest question is that how much will the salary and pension change after the implementation of the new pay commission.
What is DA and DR?
Dearness Allowance i.e. DA is given to central government employees, while Dearness Relief i.e. DR is for pensioners. The objective of both of these is to provide relief from rising inflation. Changes are made in DA and DR from time to time. It is usually decided on the basis of inflation data and Consumer Price Index (CPI).
Fitment factor in salary increase
The biggest discussion in the 8th Pay Commission is about the fitment factor. This is the multiplier on the basis of which the new basic salary is decided. A fitment factor of 2.57 was implemented in the 7th Pay Commission. After this, the minimum basic pay increased from Rs 7 thousand to Rs 18 thousand. Now employee organizations are demanding to increase the fitment factor in the new pay commission. If there is a big change in this, there can be a significant difference in the basic salary of the employees.
3.83 Why the demand for fitment factor?
Many employee organizations have demanded higher fitment factor for the 8th Pay Commission. He says that in view of the current inflation and expenses, a major improvement in salaries is necessary. If the government approves a higher fitment factor as per the demand of the employees, then along with the increase in basic pay, other allowances may also be affected.
DA, HRA and other allowances will be affected
After the change in basic salary, the calculation of dearness allowance, house rent allowance and other facilities may also change. For this reason, employees are considering the fitment factor as most important. However, the final decision will be clear only after the recommendations and approval of the 8th Pay Commission by the government.
Important changes expected for pensioners also
The impact of the 8th Pay Commission will not be limited to employees only, but will also be important for pensioners. The impact of new changes in calculation of DR and pension can be seen. At present, the hopes of the employees and pensioners rest on the report of the commission and the final decision of the government.
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