8th Pay Commission Kicks Off: Govt Employees Can Expect Big Pay Boost

The 8th Pay Commission has been officially formed, which will determine the salary hike for central government employees through the fitment factor. In the 7th Pay Commission, this fitment factor was 2.57.

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8th Pay Commission Update

The hot topic for central government employees is the 8th Pay Commission. The process has officially started with the government approving the Terms of Reference (ToR) and appointing a chairperson. The committee is expected to submit its recommendations in about 18 months.

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What is the Fitment Factor?

It's a multiplier that boosts the basic salary and pension of employees. It's the key factor for salary hikes. The 7th Pay Commission's fitment factor was 2.57. The higher the multiplier, the bigger the salary increase.

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How will the new salary be calculated?

For example, if the current basic salary is Rs 35,000 and the new multiplier is 2.11, the new basic will be Rs 73,850. HRA and other allowances will also rise. Experts say fixed allowances like TA will be revised later.

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What is the role of DA?

DA doesn't directly decide the basic salary hike, but its rate impacts the multiplier value. Currently, DA is at 58%. If it rises to 70%, the fitment factor might increase based on that. So, factors like DA and growth rate combine to create the new multiplier.

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Will the salary actually double?

If the fitment factor is 2.0, a Rs 50,000 basic becomes Rs 1,00,000. But total CTC won't double as DA resets to 0%. The in-hand salary hike will be around 20-25%. Pensioners will get a similar raise.