After the implementation of the 8th Pay Commission, how much will be the change in the salary, pension and allowances of central employees and pensioners. How much will be the impact on the fitment factor. What will be the basic salary according to the level. Let us know the answers to all these questions…………..
8th Pay Commission: The term of the 7th Pay Commission is going to end after 6 months i.e. on 31 December 2025, in such a situation, the 8th Pay Commission is to be implemented from 1 January 2026, although the chances of the recommendation being implemented are low. The matter may reach the end of 2026 or 2027, because it takes about 12 to 18 months to implement the recommendations of the new Pay Commission and the Terms of Reference (ToR) have not been decided yet.
Actually, the Pay Commission is constituted every 10 years in the country. Its objective is to review the salary, allowances and pension benefits received by all government employees and pensioners. After the implementation of the 8th Pay Commission, a big change will be seen in the salary and pension of more than 1 crore central employees and pensioners of the country. Apart from this, how much will be the impact on DA-allowances and fitment factor. Let’s know in detail……..
What will be the impact on the fitment factor?
The fitment factor is considered to play an important role in deciding the basic salary of central employees. The fitment factor is a number that is used to calculate the basic salary of the employee. Due to this factor, there is a significant increase in the salary of the employees.
In the 6th Pay Commission, the fitment factor was 1.86 and the minimum basic salary increased from Rs 2,750 to Rs 7,000. In the 7th Pay Commission, it was 2.57, due to which the minimum salary increased from Rs 7,000 to Rs 18,000.
If the fitment factor is kept between 2.5 to 2.86 in the 8th Pay Commission, then the salary of the employees can increase by Rs 40,000 to Rs 45,000. 45 lakh employees and 67 lakh pensioners will get the benefit of this.
How much will the salary increase at different levels?
Let’s know how much salary can be received at different pay levels in the 8th Pay Commission…….
- Level 3 (Grade Pay 2000): Basic salary around Rs 57,456, total salary Rs 74,845, in-hand salary after deduction is around Rs 68,849.
- Level 6 (Grade Pay 4200): Basic salary around Rs 93,708, total salary Rs 1,19,798, in-hand salary around Rs 1,09,977.
- Level 9 (Grade Pay 5400): Basic salary Rs 1,40,220, total salary Rs 1,81,073, in-hand salary around Rs 1,66,401.
- Level 11 (Grade Pay 6600): Basic Rs 1,84,452, total salary Rs 2,35,920, in-hand salary around Rs 2,16,825.
There will be a change in DA-allowance as well
There is a lot of discussion about whether the current dearness allowance (DA) will be added to the basic salary or a new formula will be decided upon after the implementation of the 8th Pay Commission, because in 2016, 125% DA was merged and the calculation of DA was started again. It is reported that this time also the government is considering completely changing the formula used for calculating DA. Like 2016, there may be major changes in the pay scale, promotion, and salary structure of employees in the new pay commission.
Along with the increase in basic salary, there will also be changes in allowances like House Rent Allowance (HRA) and Travel Allowance (TA). Since the rates of House Rent Allowance are revised with every Pay Commission. In the 6th Pay Commission, the rates of HRA were revised at the rate of 30% (X city), 20% (Y city) and 10% (Z city). In the 7th Pay Commission it was revised to 24, 16 and 8%. On DA becoming 50%, HRA was increased to 30, 20, 10%, hence it is expected that in the 8th Pay Commission also the rates of HRA can be revised again according to the basic pay and DA structure.
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