8th Pay Commission: The Union Cabinet has approved the 8th Pay Commission. Just a few months ago, the Dearness Allowance (DA) for central government employees crossed 50% of their basic salary.
The Awadh Times, New Delhi: The Union Cabinet led by Prime Minister Narendra Modi has approved the formation of the 8th Pay Commission on January 16, 2025. Union Minister Ashwini Vaishnav announced on Thursday that Prime Minister Narendra Modi has approved the formation of the 8th Pay Commission to change the salary of about 50 lakh central employees.
This will also benefit about 65 lakh pensioners. In this, not only the salary of the employees will increase, but there will also be a change in the Dearness Allowance (DA).
How much will the salary increase in 8th Pay Commission:
It is not yet clear how much the salary will increase under the 8th Pay Commission. Though the exact percentage of pay hike is not mentioned, the report suggests that the fitment factor – the key multiplier used to determine pay and pension – could increase from 2.57 to 2.86. If the fitment factor is 2.86, the minimum basic pay could increase from Rs 18,000 to Rs 51,480.
What is fitment factor in 8th Pay Commission:
The fitment factor is an important element used in calculating the revised pay and pension amount for central government employees. It acts as a multiplication coefficient, which is used to convert the existing pay of employees to the new pay. The fitting factor is a figure that is calculated by multiplying it by the employee’s current base salary.
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The employee’s new base salary will be the amount that results from this multiplication. Because the fitment factor was 2.57 under the 7th Pay Commission, and central government employees’ minimum basic pay increased from Rs 7,000 to Rs 18,000 under the 6th Pay Commission.
The basic pay does not include perks, allowances and performance pay. When dearness allowance (DA), house rent allowance (HRA), transport allowance (TA) and other benefits are included, the total minimum pay under the 7th Pay Commission comes to Rs 36,020 per month.
