Latest news with #8thCPC
News18
2 days ago
- Business
- News18
8th Pay Commission ToR Delayed: What Is 'Terms Of Reference', Why Is It Important?
Last Updated: With over 203 days passed since the announcement, the 8th CPC's official ToR is now facing unusual delay. 8th Pay Commission News: More than 1 crore central government employees and pensioners are awaiting the much-anticipated 8th Central Pay Commission's (CPC) official notification, even after nearly seven months of its announcement. The delay, according to reports, is primarily because the government is yet to finalise and issue the Terms of Reference (ToR), a critical procedural requirement before any pay commission can begin its work. The 8th Pay Commission was announced in January 2025. 8th Pay Commission: What Is Terms of Reference (ToR)? The 'Terms of Reference' is essentially the blueprint that guides a Pay Commission's functioning. It outlines the scope of work and the specific areas where the commission is expected to make recommendations, ranging from basic pay structure, allowances, and pension revisions, to retirement benefits and service conditions. Without the ToR, the Commission has no formal direction or legal mandate to operate. In effect, no chairman or members can be appointed, and the commission is considered non-existent on paper. 8th Pay Commission: Why Is ToR So Crucial? The ToR acts as the foundation document of any pay commission. It not only defines the agenda but also sets timelines and expectations. In the absence of ToR, the commission cannot initiate data collection, interact with stakeholders, or analyse economic parameters. This delay thus not only stalls internal administrative planning but also dampens the hopes of employees awaiting timely implementation of revised pay structures. How Delayed Is The 8th Pay Commission? Historically, there has been some gap between the announcement of a pay commission and its official notification with ToR. But, the current delay is the second-longest in India's pay commission history, only behind the 5th CPC, which took over 7 months to be notified after being announced in September 1993. With over 203 days passed since the announcement, the 8th CPC's official ToR is now facing unusual delay. 8th Pay Commission: When Will It Be Implemented? While the new pay structure is scheduled to take effect from January 1, 2026, employees had hoped that early notification would help ensure implementation by early 2027. But this now appears unlikely. Typically, a pay commission takes 18 to 24 months to complete its report. After submission, it takes another 6 months for the government to review and implement the recommendations. If the delay in issuing the ToR persists, the entire cycle may get pushed further, potentially delaying the new pay regime by 2 years or more. Such uncertainty is a source of concern for both serving employees and retired pensioners, especially in the face of rising inflation and cost-of-living pressures. According to a report by Kotak Institutional Equities, the 8th CPC is unlikely to be implemented before late 2026 or early 2027. The 6th and 7th CPCs took roughly 1.5 years to prepare their reports after being set up, followed by a 3-9 month implementation window after the Cabinet approval. tags : 8th Pay Commission view comments Location : New Delhi, India, India First Published: August 08, 2025, 13:35 IST News business » economy 8th Pay Commission ToR Delayed: What Is 'Terms Of Reference', Why Is It Important? Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
India.com
4 days ago
- Business
- India.com
8th Pay Commission Massive Update: Government holds consultations with key ministries, employees likely to get salary hike of…, fitment factors to get…
8th Pay Commission BIG update: When will 8th CPC come into effect, how much salary will increase? Key details Revealed 8th Pay Commission: In a major development, the Modi government has initiated discussions with key departments regarding the 8th Pay Commission. According to the reports, the government is holding consultations with the Home Ministry, Ministry of Defence, Department of Personnel and Training, and various state governments. It is important to note that once the commission is formally constituted and submits its report to the government, there be a clear picture of the new salary structure and allowances for employees. In the 7th Pay Commission, the fitment factor was 2.57. Experts now estimate that in the 8th Pay Commission, it could range between 1.92 and 2.86. This means the higher the fitment factor, the greater the salary hike. For example, if an employee's current basic salary is ₹30,000 and the fitment factor is set at 2.57, the new basic salary would become ₹77,100. How fitment factors of 1.92, 2.28, or 2.57 may impact Grade Pay 1900, 2400, 4600, 7600, and 8900 employees' basic salary, house rent allowance (HRA), transport allowance (TA), National Pension System (NPS) and Central Government Health Scheme (CGHS) amounts, know in this story through calculation examples. At 1.92 fitment factor Revised basic pay: Rs 54,528 HRA: Rs 13,086.72 TA: Rs 3,600 Gross salary: Rs 71,214.72 NPS: Rs 5,452.80 CGHS: Rs 250 Net salary: Rs 65,511.92 At 2.57 fitment factor Revised basic pay: Rs 72,988 HRA: Rs 17,517.12 TA: Rs 3,600 Gross salary: Rs 94,105.12 NPS: Rs 7,298.80 CGHS: Rs 250 Net salary: Rs 86,556.32 At 1.92 fitment factor Revised basic pay: Rs 73,152 HRA: Rs 17,556.48 TA: Rs 3,600 Gross salary: Rs 94,308.48 NPS: Rs 7,315.20 CGHS: Rs 250 Net salary: Rs 86,743.28 At 2.57 fitment factor Revised basic pay: Rs 97,917 HRA: Rs 23,500.08 TA: Rs 3,600 Gross salary: Rs 1,25,017.08 NPS: Rs 9,791.70 CGHS: Rs 250 Net salary: Rs 1,14,975.38 At 1.92 fitment factor Revised basic pay: Rs 1,12,512 HRA: Rs 27,002.88 TA: Rs 3,600 Gross salary: Rs 1,43,114.88 NPS: Rs 11,251.20 CGHS: Rs 650 Net salary:Rs 1,31,213.68 At 2.57 fitment factor Revised basic pay: Rs 1,50,602 HRA: Rs 36,144.48 TA: Rs 3,600 Gross salary: Rs 1,90,346.48 NPS: Rs 15,060.20 CGHS: Rs 650 Net salary: Rs 1,74,636.28 At 1.92 fitment factor Revised basic pay: Rs 1,53,984 HRA: Rs 36,956.16 TA: Rs 7,200 Gross salary: Rs 1,98,140.16 NPS: Rs 15,398.40 CGHS: Rs 650 Net salary: Rs 1,82,091.76 At 2.57 fitment factor Revised basic pay: Rs 2,06,114 HRA: Rs 49,467.36 TA: Rs 7,200 Gross salary: Rs 2,62,781.36 NPS: Rs 20,611.40 CGHS: Rs 650 Net salary: Rs 2,41,519.96 At 1.92 fitment factor Revised basic pay: Rs 1,85,472 HRA: Rs 44,513.28 TA: Rs 7,200 Gross salary: Rs 2,37,185.28 NPS: Rs 18,547.20 CGHS: Rs 650 Net salary: Rs 2,17,988.08 At 2.57 fitment factor Revised basic pay: Rs 2,48,262 HRA: Rs 59,582.88 TA: Rs 7,200 Gross salary: Rs 3,15,044.88 NPS: Rs 24,826.20 CGHS: Rs 650 Net salary: Rs 2,89,568.68 (Disclaimer: These are projections. Actual revised amounts may vary.) We have calculated the estimated revised basic pay, HRA, TA, NPS, and CGHS payouts at 1.92, 2.28, and 2.57 fitment factors. We have taked the HRA as 24 per cent of the employee's basic salary, TA for higher TPTA cities, and CGHS at current rates. We will take 2 basic pays each from Pay Grades 1900, 2400, 4600, 7600, and 8900.
India.com
4 days ago
- Business
- India.com
8th Pay Commission: What the 8th Pay Commission Fitment Factor Means For You
New Delhi: The Government of India, under Prime Minister Modi, is in the process of forming the 8th Central Pay Commission (CPC). This commission will review and recommend salary revisions for nearly 50 lakh central government employees and about 65 lakh pensioners. Key ministries like the Ministry of Home Affairs, Ministry of Defence, Department of Personnel and Training, and various state governments are being consulted as part of this process. The government's plan is to formally notify and appoint the chairperson and members of the 8th CPC soon, after which the commission will start its work. The revised pay structure is expected to be implemented from January 1, 2026, but final figures will be available only after the commission submits its report and the government approves it. A central concept in salary revision under the pay commissions is the "fitment factor." The fitment factor is a multiplier used to calculate the new basic pay of government employees by multiplying it with their current basic pay. This ensures uniform salary hike across different pay grades. For example, if your current basic pay is Rs 30,000 and the fitment factor is 2.57, your new basic pay becomes Rs 77,100 (30,000 x 2.57). A higher fitment factor means a bigger salary increase. The 7th Pay Commission used a fitment factor of 2.57. For the 8th Pay Commission, experts predict it will range from about 1.92 to 2.86 depending on economic conditions, inflation, and government fiscal capacity. Here is a simple example of how the fitment factor affects salaries at different pay grades (grade pays of Rs 1900, 2400, 4600, 7600, 8900). These numbers include basic pay multiplied by the factor, along with typical allowances such as: House Rent Allowance (HRA): 24 percent of basic pay for X-class cities Transport Allowance (TA): Rs 3,600 to Rs 7,200 depending on level National Pension System (NPS) deduction: 10 percent of basic pay Central Government Health Scheme (CGHS): small fixed rate For Grade Pay 1900: At fitment factor 1.92: Basic Rs 54,528, HRA Rs 13,086, TA Rs 3,600 → Net salary approx Rs 65,512 At fitment factor 2.57: Basic Rs 72,988, HRA Rs 17,517 → Net salary approx Rs 86,556 For Grade Pay 2400: At 1.92 factor: Basic Rs 73,152 → Net around Rs 86,743 At 2.57 factor: Basic Rs 97,917 → Net around Rs 1,14,975 For Grade Pay 4600: At 1.92 factor: Basic Rs 1,12,512 → Net approx Rs 1,31,213 At 2.57 factor: Basic Rs 1,50,602 → Net approx Rs 1,74,636 For Grade Pay 7600: At 1.92 factor: Basic Rs 1,53,984 → Net approx Rs 1,82,092 At 2.57 factor: Basic Rs 2,06,114 → Net approx Rs 2,41,519 For Grade Pay 8900: At 1.92 factor: Basic Rs 1,85,472 → Net approx Rs 2,17,988 At 2.57 factor: Basic Rs 2,48,262 → Net approx Rs 2,89,569 These projections show how salary and allowances might increase under different fitment factors, giving employees a rough idea of what to expect. The final decision on the fitment factor and pay revision will depend on the 8th CPC's recommendations and government approval[quoted data]. It is also expected that the dearness allowance (DA) will be reset to zero when the 8th CPC pay structure is implemented, as happened with the 7th CPC. DA is revised twice a year to offset inflation and is a separate component from the basic pay and allowances.
News18
5 days ago
- Business
- News18
8th Pay Commission Matrix: Revised Salary Estimates For Employees With Grade Pays From Rs 2,400 To Rs 8,700
Last Updated: The Modi government has begun consultations for the 8th Pay Commission, raising hopes for a fresh salary hike for central government employees. The Modi government has initiated discussions with key departments like the Ministry of Home Affairs, the Ministry of Defence, the Department of Personnel and Training, and state governments to form the 8th Central Pay Commission (CPC). Once this commission is officially set up and submits its report, we will get a clearer idea of how the salaries of central government employees might be revised. The salary hike will mostly depend on a key figure called the fitment factor, which acts as a multiplier to determine the new basic pay. In the 7th CPC, the fitment factor was 2.57. As per experts now estimate that the 8th CPC might propose a fitment factor in the range of 1.92 to 2.86. Based on this, new salary projections have been calculated across various pay grades. What is Fitment Factor? The fitment factor is a number used to multiply an employee's current basic pay to arrive at their revised salary under the new pay commission. A higher fitment factor means a bigger hike in salary. For example, if your basic pay is Rs 30,000 and the fitment factor is 2.57, your new basic pay would be Rs 77,100. It is important to note that HRA is taken as 24 per cent of basic salary (for X-class cities), TA varies from Rs 3,600 to Rs 7,200 depending on the level, NPS is 10 per cent of basic, and CGHS is kept at current rates, according to For Grade Pay 1900: At 1.92 fitment factor: Basic: Rs 54,528 | HRA: Rs 13,086 | TA: Rs 3,600 Gross: Rs 71,215 | NPS: Rs 5,453 | CGHS: Rs 250 Net: Rs 65,512 At 2.57 fitment factor: Basic: Rs 72,988 | HRA: Rs 17,517 For Grade Pay 2400: At 1.92 fitment factor: Basic: Rs 73,152 | Net: Rs 86,743 At 2.57 fitment factor: Basic: Rs 97,917 | Net: Rs 1,14,975 For Grade Pay 4600: At 1.92: Basic: Rs 1,12,512 | Net: Rs 1,31,213 At 2.57: Basic: Rs 1,50,602 | Net: Rs 1,74,636 For Grade Pay 7600: At 1.92: Basic: Rs 1,53,984 | Net: Rs 1,82,092 At 2.57: Basic: Rs 2,06,114 | Net: Rs 2,41,519 For Grade Pay 8900: At 1.92: Basic: Rs 1,85,472 | Net: Rs 2,17,988 At 2.57: Basic: Rs 2,48,262 | Net: Rs 2,89,569 Here's What to Expect While these calculations provide a helpful preview, they are only estimates based on current assumptions and expert predictions. The final salary figures will only be confirmed once the 8th CPC submits its official recommendations and the government approves them. For now, employees can use this information to get a rough idea of what their revised salary, allowances, and deductions might look like under the upcoming pay structure. Keep in mind that these are indicative numbers. Actual revised amounts may differ once officially announced. view comments Location : Delhi, India, India First Published: August 05, 2025, 11:44 IST News business 8th Pay Commission Matrix: Revised Salary Estimates For Employees With Grade Pays From Rs 2,400 To Rs 8,700 Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
India.com
6 days ago
- Business
- India.com
8th Pay Commission BIG Update: Revised Salary Estimates for Grade Pay 2400, 4200, 4800, 7600, 8700 employees, HRA, CGHS, TA, NPS likely to…
8th Pay Commission Latest Update 8th CPC Salary Projections: The Modi government has started consultations with key stakeholders, including the Ministry of Home Affairs, the Ministry of Defence, Department of Personnel and Training, and state governments, as part of the process to constitute the 8th Central Pay Commission (CPC). Once the 8th CPC is constituted, submits its recommendation report, and receives government approval, central government employees will get a clear picture of the extent of their salary revision. It is important to note that the increased payouts will depend on the fitment factor that the 8th Pay Commission decides on. The fitment factor was 2.57 for the 7th Pay Commission. It may be in the range of 1.92 to 2.86 in the 8th CPC, as per many expert opinions and estimates. How fitment factors of 1.92, 2.28, or 2.57 may impact Grade Pay 1900, 2400, 4600, 7600, and 8900 employees' basic salary, house rent allowance (HRA), transport allowance (TA), National Pension System (NPS) and Central Government Health Scheme (CGHS) amounts, know in this story through calculation examples. We will calculate HRA at 24 per cent of the employee's basic salary (for employees residing in X class cities), and TA meant for higher TPTA cities (which is in the range of Rs 1,350 to Rs 7,200 for employees at different levels). Since NPS is calculated at 10 per cent of the basic salary of the employee, we will keep it at the same level. CGHS will be calculated as per the current rates. At 1.92 fitment factor Revised basic pay: Rs 54,528 HRA: Rs 13,086.72 TA: Rs 3,600 Gross salary: Rs 71,214.72 NPS: Rs 5,452.80 CGHS: Rs 250 Net salary: Rs 65,511.92 At 2.57 fitment factor Revised basic pay: Rs 72,988 HRA: Rs 17,517.12 TA: Rs 3,600 Gross salary: Rs 94,105.12 NPS: Rs 7,298.80 CGHS: Rs 250 Net salary: Rs 86,556.32 At 1.92 fitment factor Revised basic pay: Rs 73,152 HRA: Rs 17,556.48 TA: Rs 3,600 Gross salary: Rs 94,308.48 NPS: Rs 7,315.20 CGHS: Rs 250 Net salary: Rs 86,743.28 At 2.57 fitment factor Revised basic pay: Rs 97,917 HRA: Rs 23,500.08 TA: Rs 3,600 Gross salary: Rs 1,25,017.08 NPS: Rs 9,791.70 CGHS: Rs 250 Net salary: Rs 1,14,975.38 At 1.92 fitment factor Revised basic pay: Rs 1,12,512 HRA: Rs 27,002.88 TA: Rs 3,600 Gross salary: Rs 1,43,114.88 NPS: Rs 11,251.20 CGHS: Rs 650 Net salary:Rs 1,31,213.68 At 2.57 fitment factor Revised basic pay: Rs 1,50,602 HRA: Rs 36,144.48 TA: Rs 3,600 Gross salary: Rs 1,90,346.48 NPS: Rs 15,060.20 CGHS: Rs 650 Net salary: Rs 1,74,636.28 At 1.92 fitment factor Revised basic pay: Rs 1,53,984 HRA: Rs 36,956.16 TA: Rs 7,200 Gross salary: Rs 1,98,140.16 NPS: Rs 15,398.40 CGHS: Rs 650 Net salary: Rs 1,82,091.76 At 2.57 fitment factor Revised basic pay: Rs 2,06,114 HRA: Rs 49,467.36 TA: Rs 7,200 Gross salary: Rs 2,62,781.36 NPS: Rs 20,611.40 CGHS: Rs 650 Net salary: Rs 2,41,519.96 At 1.92 fitment factor Revised basic pay: Rs 1,85,472 HRA: Rs 44,513.28 TA: Rs 7,200 Gross salary: Rs 2,37,185.28 NPS: Rs 18,547.20 CGHS: Rs 650 Net salary: Rs 2,17,988.08 At 2.57 fitment factor Revised basic pay: Rs 2,48,262 HRA: Rs 59,582.88 TA: Rs 7,200 Gross salary: Rs 3,15,044.88 NPS: Rs 24,826.20 CGHS: Rs 650 Net salary: Rs 2,89,568.68 (Disclaimer: These are projections. Actual revised amounts may vary.) We have calculated the estimated revised basic pay, HRA, TA, NPS, and CGHS payouts at 1.92, 2.28, and 2.57 fitment factors. We have taked the HRA as 24 per cent of the employee's basic salary, TA for higher TPTA cities, and CGHS at current rates. We will take 2 basic pays each from Pay Grades 1900, 2400, 4600, 7600, and 8900.
