8th Pay Commission: Government employees are not expected to get much hike in the 8th Pay Commission. According to a new report, this time the hike may be less than the previous Pay Commission. Know the complete details.
8th Pay Commission: Government employees and pensioners are eagerly waiting for the 8th Pay Commission. It is expected that salary and pension will increase according to inflation. Government employees are waiting for a good increase. But, a recent report by Kotak Institutional Equities about the 8th Pay Commission may disappoint government employees.
What does Kotak’s latest report say?
According to a report by Kotak Institutional Equities, central government employees may get an effective salary hike of only 13% under the 8th Pay Commission . This will be less than the 14.3% hike received in the 7th Pay Commission.
According to the report, this time the fitment factor is likely to be 1.8. In the 7th Pay Commission it was 2.57. This means that the new basic will be decided by multiplying the existing basic pay by 1.8. However, DA (dearness allowance) will start from zero. This will result in a relatively lesser increase in the total salary.
Basic pay will increase, but there will be a problem here
The basic salary will increase when the 8th Pay Commission is implemented. For example, if an employee’s current basic pay is ₹18,000, then it can go up to ₹32,000 according to the 1.8 factor. But, currently ₹9,900 (55% of DA) is added to it. This makes the total salary ₹27,900. This benefit will be limited due to DA reset in the new salary structure.
Similarly, those whose basic pay is ₹ 50,000, their new basic can go up to ₹ 90,000. However, after removing the existing DA of ₹ 27,500, the effective increase will be only from ₹ 77,500 to ₹ 90,000.
Demand for equality like 7th pay commission
The members of the employee side in the employee union-National Council-Joint Consultative Machinery (JCM) have demanded a fitment factor of 2.57 similar to the 7th Pay Commission. However, according to initial indications, the government is in a mood to keep it low.
Experts believe that the increase in basic pay will appear big, but the actual benefit will depend on how DA is incorporated in the new structure.
When will the 8th pay commission be implemented
The formal process of formation of the 8th Pay Commission is expected to begin in the next few months. Its suggestions can be implemented around 2026. The 8th Pay Commission is to be implemented by 1 January 2026 in an ideal situation. If there is more delay than this, then the government can give arrears to government employees and pensioners.
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