8th Pay Commission salary revision: In a major relief for about 1.2 crore central government employees and retirees, the Modi government on January 16 announced the approval of the 8th Pay Commission.
On the Union Cabinet’s nod for the next pay panel, Union Minister Ashwini Vaishnaw said that PM Narendra Modi has approved the 8th Pay Commission for the benefit of all central government employees and pensioners.
He also mentioned that since 1947, seven pay commissions have been formed. The 7th Pay Commission came into effect in 2016 and will remain in effect until 2026. Vaishnaw added that there is sufficient time to receive the recommendations and implement them.
He further said that the government will soon appoint the chairman and two members of the panel, which will recommend changes to the pay structure of central government employees.
Government employees, who had been eagerly awaiting this announcement, are now likely to be considering the extent of changes in their pay and allowances.
Also read: Good news for central govt employees! 8th Pay Commission gets Cabinet nod
What would be the expected hike in pensions and salaries for central government staff?
With the announcement now made, the panel, once appointed, will begin its work, having approximately 11 months to submit its recommendations to the government. Among various responsibilities, it will recommend the fitment factor, which will serve as the basis for revising the salaries and pensions of central government employees. In addition to the fitment factor, the panel will also propose other key modalities.
The fitment factor is a key multiplier used to calculate salaries and pensions for government employees.
Under the 7th Pay Commission, employee unions had demanded a fitment factor of 3.68 for salary revision of employees but the government set the fitment factor at 2.57.
Based on the fitment factor revision, the minimum basic pay for central government employees rose to Rs 18,000 per month, up from Rs 7,000, registering a 2.57-fold increase. Likewise, the minimum pension of retirees increased from Rs 3,500 to Rs 9,000. The maximum salary of serving employees was revised to Rs 2,50,000 and the maximum pension was fixed at Rs 1,25,000, taking into consideration the fitment factor of 2.57.
“The pension shall not be less than Rs 9000/- (excluding the element of additional pension to old pensioners) and shall not be more than 50% of the highest pay in Government i.e.
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