Latest news with #7thPayCommission
News18
3 days ago
- Business
- News18
8th Pay Commission: Level 1 Salary May Rise Nearly 40% With 1.92 Fitment Factor
Last Updated: The fitment factor is a multiplier used to calculate the revised basic pay for central government employees when a new pay commission is implemented. 8th Pay Commission: The 8th Pay Commission, officially announced in January 2024, is expected to be set up soon to revise salaries, pensions, and allowances for central government employees and retirees. Historically, pay commissions have revised salaries about every 10 years. The 6th Pay Commission (2006) and the 7th Pay Commission (2016) brought significant increases in basic pay and allowances. The minimum basic salary of central government employees was increased from Rs 2,750 to 7,000 under the 6th CPC, and from 7,000 to Rs 18,000 under 7th CPC. The pressing question among all employees and pensioners is how much their salary is expected to be increased in the 8th pay commission. What Is the Fitment Factor? The fitment factor is a multiplier used to calculate the revised basic pay for central government employees when a new pay commission is implemented. It ensures uniform salary hikes during the transition from the old to the new pay structure. Formula: New Basic Pay = Old Basic Pay × Fitment Factor Under the 7th Pay Commission, the fitment factor was set at 2.57. For instance, if an employee's basic pay was Rs 10,000 under the 6th CPC, their revised pay became: Rs 10,000 × 2.57 = Rs 25,700 According to several reports, the fitment factor could be 1.96 in the 8th pay commission. How Much Level 1 Employee Would See The Salary Hike On Fitment Factor Of 1.92? The 7th Pay Commission, introduced in 2016, replaced the old grade-pay system with a new structure called the Pay Matrix. This system categorizes salaries based on job positions, ranging from level 1 to level 18. Level 1: Entry-level positions such as peon, clerk, MTS If the fitment factor is 1.92, then Level 1 government employees may see a salary jump of around Rs 15,000 per month, which is about a 40% increase in take-home pay under the 8th Pay Commission. First Published: May 26, 2025, 08:24 IST
News18
3 days ago
- Business
- News18
8th Pay Commission: Delay Likely, But Will All Retirees After January 2026 Get Its Benefits?
Last Updated: The 8th Pay Commission for central government employees and pensioners may be delayed beyond January 1, 2026, but retirees after this date may still benefit from revised pensions. As discussions around the 8th Pay Commission continue among central government employees and pensioners, reports suggest that its implementation is likely to be delayed from the earlier expected date of January 1, 2026. Now, one key question is drawing attention: Will those retiring on or after January 1, 2026, still benefit if the pay commission's recommendations are delayed? 8th Pay Commission: What's The Status? The 8th Central Pay Commission, which will review and revise the salary structure, allowances, and pensions of over 50 lakh central government employees and around 65 lakh pensioners, was announced by the central government in January 2025. Its terms of reference (ToR) and members have not been finalised yet. However, last month, the government issued a circular informing that various vacancies, around 35 posts, will be filled on a deputation basis for the 8th Pay Commission. Pay commissions are typically constituted every 10 years, with the last (7th Pay Commission) being implemented from January 1, 2016. Its term is coming to an end on December 31, 2025. As its chairman, members and ToR have not been finalised yet, widespread expectations point to delay in its implementation to late 2026 or early 2027, against the expected timeline of January 1, 2026. Why Is It Getting Delayed? There has been no formal communication from the Ministry of Finance or the Department of Expenditure on the timeline. However, delays could be attributed to fiscal considerations and alternative pay adjustment mechanisms like the Aykroyd formula and inflation-linked increments, though they have not replaced the need for a full-fledged commission. Yes, if the commission's recommendations are implemented with a retrospective date (as in the past), those retiring after January 1, 2026, will receive revised pension and salary arrears. For example, when the 7th Pay Commission was implemented in 2016, many beneficiaries received arrears for months before the actual rollout date. What Kind of Salary Hike Is Expected? While official figures are yet to emerge, analysts and employee unions speculate that the minimum basic pay may increase from Rs 18,000 to Rs 26,000, representing a hike of around 40-44 per cent. According to several reports, the fitment factor, a key multiplier for revising salaries, could be 1.96 in the 8th pay commission, although this remains unconfirmed. If the fitment factor is 1.92, then Level 1 government employees may see a salary jump of around Rs 15,000 per month, which is about a 40% increase in take-home pay under the 8th Pay Commission. First Published:
India.com
4 days ago
- Business
- India.com
8th Pay Commission Salary Calculations: How will salary be calculated under 8th Pay Commission? Check projected revised pays, HRA & other allowances if fitment factor is…
8th Pay Commission Salary Calculations: How will salary be calculated under 8th Pay Commission? Check projected revised pays, HRA & other allowances if fitment factor is... Salary under 8th Pay Commission: The Central government is soon going to announce the 8th Pay Commission. Once the 8th CPC's recommendations are approved, the employees will start getting the revised salary. The 7th Pay Commission categorised employees' salaries on the basis of the pay matrix, where there are 18 levels. Employees with different ranks and responsibilities come under these basic pay levels. In Levels 4-9, employees such as junior staff, assistants, middle management, and junior officers come. All central employees got a 2.57 fitment factor in the 7th Pay Commission. What if the same fitment factor is applied to the 8th Pay Commission salary structure? What can be projected gross and total salaries, house rent allowance (HRA) and travel allowance (TA), and National Pension System (NPS) and Central Government Health Scheme (CGHS) contributions at a 2.57 fitment factor? We will take the examples of Level 4 (basic pay Rs 25,500), Level 5 (basic pay Rs 29,200), Level 6 (basic pay Rs 35,400), Level 7 (basic pay Rs 44,900), Level 8 (basic pay Rs 47,600), Level 9 (basic pay Rs 53,100) for our calculations. In the 7th Pay Commission, the pay matrix forms the basic pay structure for central government employees. It has 18 levels, 4 pay bands and 15 grade pays. The levels categorise employees based on their ranks and responsibilities. In Level 1-5, entry-level clerks, junior staff, clerks, and assistants come, while in levels 6-9, middle management and junior officers come. In Level 10 onwards, senior rank officers come. Apart from the basic salary, employees get dearness allowance (DA), which is revised twice a year. Other allowances such as HRA, TA, and child education are also added to the salary. Contributions to National Pension System (NPS) are mandatory for employees who joined from January 1, 2004, and onwards, and CGHS are deducted from the salary to form the total salary that the employee gets. The salary is revised on the basis of the fitment factor. The basic salary is multiplied by it to establish the revised basic pay. Allowances are added to it to form the revised salary. For the 6th Pay Commission, the fitment factor was 1.92; for the 7th, it was 2.57. It will be known once 8th Pay Commission recommendations are approved. But it may be anywhere in the range of 1.92-2.86.
NDTV
20-05-2025
- Business
- NDTV
8th Pay Commission: Expected Impact On Salary And Latest Updates
The Indian government has announced the establishment of the 8th Pay Commission, which will impact over 1 crore central government employees and pensioners. This commission will determine salary and pension revisions, with key discussions centred around the fitment factor and minimum wages. The fitment factor is a crucial multiplier used to revise salaries. The 8th Pay Commission's decisions are eagerly awaited by millions of employees and pensioners, who hope for significant revisions reflecting current economic realities. What is the fitment factor? A multiplication unit is used to revise salaries. In the 7th Pay Commission, it was set at 2.57, increasing the minimum salary from Rs 7,000 to Rs 18,000. To calculate a revised salary using a fitment factor, you multiply the current basic pay (which includes basic pay and grade pay) by the fitment factor. Revised Basic Pay = (Current Basic Pay + Grade Pay) X Fitment Factor Current Demand: Employee unions are pushing for a fitment factor higher than 2.57, while experts predict it might be around 1.92 to 2.86. Expected Outcome: The commission's recommendations will affect not only salaries but also pensions and allowances for central government employees, defence personnel, and pensioners. "We are waiting for the Terms of Reference for the 8th Pay Commission to be approved. Then we will move ahead with our demand for these (fitment factor and minimum wage)," a member of the National Council-Joint Consultative Machinery, or NC-JCM, told NDTV Profit on the condition of anonymity. NC-JCM, notably, is an official body comprising bureaucrats and employee union leaders, and its purpose is to resolve all disputes between the government and staff through dialogue. Once the ToR is approved, the staff side's focus will shift towards their demands to be made before the 8th Pay Commission, and the foremost will be their ask related to the fitment factor and minimum wages, another NC-JCM member said. Discussions are ongoing, and the government's approval of the Terms of Reference will pave the way for finalising the fitment factor and minimum wages. The commission's decisions are eagerly awaited by millions of employees and pensioners, who hope for significant revisions that reflect current economic realities.
India.com
20-05-2025
- Business
- India.com
8th Pay Commission BIG Update? Is Modi government planning to reject 2.57 fitment factor demand? What we know so far
New Delhi: The central government in January announced the setting up of the 8th Pay Commission. After the implementation of the 8th Pay Commission, the salary and pension of over 1 crore central government employees and pensioners will be revised. Since the pay panel announcement, speculations are rife that the new pay panel may settle for a fitment factor in the range of 2.57 to 2.86. It is important to note that the 2.57 was the fitment factor was adopted by the 7th Pay Commission and witnessed the minimum basic salary rise from Rs 7,000 to Rs 18,000 – a 2.57 times jump. According to the reports, the Staff Side of the National Council Joint Consultative Machinery (NC JCM) has sought a fitment factor higher than 2.57 – one that was fixed by the 7th Pay Commission. The NC JCM Staff Side is a group of representatives who negotiate with the government on behalf of central government employees. This year, the Staff Side put forth as many as 15 demands to be included in the Terms of Reference (ToR), which is expected to be rolled out this month before the 8th Pay Panel starts working. Among its various demands, the Staff Side wants the pay panel to examine and revise the pay, allowances, pensions, and retirement benefits for central government employees, including industrial and non-industrial staff, All India Services, Defence and Paramilitary forces, Gramin Dak Sevaks, and other categories. What happened when the 7th Pay Commission came? In 2015, when the recommendations of the 7th Pay Commission came, the Staff Side demanded the hike in minimum wage to Rs 26,000. This was about 3.7 times more than the minimum wage of Rs 7,000 at that time. The Staff Side said that this amount was decided on the basis of the recommendations of the 15th Indian Labour Conference and the needs of the common employees. But the commission did not accept these demands completely. They were calculated on the basis of the Aykroyd formula and Rs 18,000 minimum wage and a fitment factor of 2.57 was decided. What happened to the 6th Pay Commission? To recall, when the 6th Pay Commission came, the staff side had demanded a minimum wage of Rs 10,000. Their argument was that if public sector employees can work on a certain salary, then central government employees should not be treated differently. However, the commission dismissed this demand as not based on facts and initially calculated the minimum basic pay to be ₹5,479. This amount was later revised slightly upward—first to ₹6,600 and eventually to ₹7,000.
