8th Pay Commission: Latest update about central government employees salary hike

8th Pay Commission: Latest update about central government employees salary hike: Shiv Gopal Mishra, Secretary (Staff Side) of the National Council-Joint Consultative Machinery (NC-JCM), has stressed that the fitment factor for the 8th Pay Commission should be at least 2.57, and ideally, it should be equal to or higher than the fitment factor of the 7th Pay Commission. He emphasized that it should not fall below the level set by the previous Pay Commission.

Discussions regarding salary increases for central government employees

Following the announcement of the 8th Pay Commission last month, there has been a surge in discussions about salary hikes for central government employees. A key element in these discussions is the fitment factor, which plays an essential role in deciding the adjustments to both base pay and pension amounts.

8th Pay Commission Latest Updates

Reports suggest that if the 8th Pay Commission adopts a fitment factor of 2.57, central government employees could see a salary hike of up to 157%. This is similar to the 7th Pay Commission, which in 2016 recommended a fitment factor of 2.57, leading to an increase in the minimum salary from Rs 7,000 to Rs 18,000.

It's crucial to understand that the fitment factor is a multiplier that determines the increase in salary and pension. It is calculated by dividing the current basic salary by the revised basic salary, and this factor is applied uniformly to all central employees. Analysts predict that the upcoming pay commission may consider a fitment factor between 1.92 and 2.86. Depending on this range, the expected salary and pension revision for central government employees and pensioners could vary from 92% to 186%.

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Additionally, several significant proposals have been put forth:

• Revising Pension Benefits: A proposal to enhance pension, gratuity, and family pension benefits, along with reinstating the defined pension scheme for employees appointed after January 1, 2004.
• Improving CGHS Facilities: A recommendation to expand the CGHS facilities, offering cashless and seamless medical services to employees.
• Increasing Education Allowances: A proposal to increase the children’s education allowance and hostel subsidy, extending coverage up to the post-graduate level.
• Reviewing Salary Structure: A review of the salary structure across all employee categories, including the merging of pay scales for better alignment.
• Introducing a Minimum Wage: The establishment of a reasonable minimum wage, in line with the Aykroyd Formula and the suggestions put forward in the 15th Indian Labour Conference.

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