For the 8th Pay Commission, a railway union proposed a formula with five fitment factors ranging from 2.92 to 4.38, depending on the job. The base pay and pension for central government employees might increase by 400% if this idea passes.
Discussions around the 8th Pay Commission are heating up all over the country. But this time, it's much bigger than the usual salary revision process. The main talk is now about a massive salary hike and pension benefits.
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400% Salary Hike!
The main highlight of the Pay Commission discussions is a new salary hike formula. This formula could increase the salaries of senior government employees by more than 400%. The proposal is currently being discussed and reviewed.
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Who made the proposal?
The Indian Railway Technical Supervisors' Association (IRTSA) has submitted this proposal for a major salary hike. IRTSA is one of the main employee unions taking part in the 8th Pay Commission discussions. They have proposed 5 different fitment factors for various pay levels instead of a single one for everyone.
The proposal suggests: A fitment factor of 2.92 for Levels 1 to 5. Employees in Levels 6 to 8 will get 3.50. For Levels 9 to 12, it will be 3.80. Levels 13 to 16 will get 4.09. And finally, Levels 17 to 18 will get a factor of 4.38.
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Impact on Salary if Accepted
If this is approved, an employee in Level 17-18 with a basic pay of ₹2.5 lakh could see their revised basic pay jump to around ₹10.95 lakh with the proposed 4.38 factor. Even mid-level employees will see a big jump; a basic salary of ₹45,000 in Level 6-8 would increase to ₹1.57 lakh.
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Proposal on Dearness Allowance
The association is also demanding a separate pay structure for technical railway staff, faster promotions, and a higher annual increment of 5%. They also want 50% of the Dearness Allowance to be merged with the basic pay before the salary revision calculations begin.
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8th Pay Commission Salary Hike Criteria
The formula is: New Basic Pay = Current Basic Pay x Fitment Factor. Under the 7th Pay Commission, the fitment factor was set at 2.57. This time, there is a demand to increase it to 3.83.
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Salary Hike Demand
The National Council-Joint Consultative Machinery has demanded a minimum basic pay of ₹69,000. Meanwhile, the Bharatiya Suraksha Mazdoor Sangh is reportedly pushing for a minimum salary of ₹72,000 and a fitment factor of 4.0.
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Family Unit
A proposal that is getting strong support from labour unions is the demand to increase the 'family unit' formula from 3 to 5. The unions argue that modern families face more financial stress compared to when previous commissions first created the wage formula decades ago.
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Number of Beneficiaries
The recommendations of the 8th Pay Commission are expected to affect more than 110 crore beneficiaries. This includes central government employees, pensioners, and their families.
