Latest news with #8thPayCommission
India.com
6 hours ago
- Business
- India.com
DA Hike Update: How Much Dearness Allowance Is Likely To Increase Ahead Of 8th Pay Commission? Can April AICPI Figures Throw Hints?
photoDetails english 2910389 Updated:Jun 03, 2025, 10:44 AM IST 7th Pay Commission DA, DR Hike Update 1 / 9 The Labour Beaureau has released AICPI-IW Figures for April 2025, fueling speculations on the next round (July-December 2025) of Dearness Allowance (DA) and Dearness Relief (DR) hike for lakhs of govt employees and pensioners. April 2025 AICPI-IW Figures 2 / 9 As per the data published by Labour Bureau, attached office of the M/o Labour & Employment the All-India CPI-IW for April, 2025 increased by 0.5 point and stood at 143.5 (one hundred forty three point five). Year-on-year inflation for the month of April, 2025 stood at 2.94% as compared to 3.87% in April, 2024. AICPI-IW Figures Collected By Labour Bureau 3 / 9 The Bureau has been compiling Consumer Price Index for Industrial Workers every month on the basis of retail prices collected from 317 markets spread over 88 industrially important centres in the country. April 2025 AICPI-IW Figures Vs May, Feb Data 4 / 9 The rise in April 2025 AICPI-IW Figures comes after rise in the last two months of the CPI-IW. March 2025, the All-India Consumer Price Index for Industrial Workers (AICPI-IW) stood at 143.0, representing a 0.2-point increase from the previous month. Year-on-year inflation for the month of March, 2025 stood at 2.95% as compared to 4.20% in March, 2024. The All-India Consumer Price Index for Industrial Workers (AICPI-IW) stood at 142.8 in February 2025, according to the Labour Bureau. How Much Dearness Allowance May Increase Ahead Of 8th Pay Commission? 5 / 9 The straight hikes in AICPI-IW Figures for April and March, after two consecutive declines in January and February hint at upward revision of DA by another 2 percent. DA will be thus likely be pushed from current 55 percent to 57 percent, ahead of the implementation the 8th Pay Commission from January 2026. DA Hiked To 55 Percent For Jan-June 2025 6 / 9 Much to market expectations, the Union Cabinet led by PM Narendra Modi on March 28 announced the much awaited Dearness Allowance (DA) and Dearness Relief Hike for lakhs of central government employees. The Modi government today announced hiked the dearness allowance by 2 percent, thus taking the DA from 53 percent to 52 percent. DA Hiked To 55 Percent From 53 Percent: How Much Salary Will Increase 7 / 9 The 2 percent DA hike has been the lowest DA hike in the last 7 years. The 2 percent increase in DA marked the lowest DA hike since July 2018. The last DA Hike was announced in October 2024. Union Cabinet approved a 3 percent Dearness Allowance (DA) increase for central government employees. A dearness allowance of 53 percent of basic pay is being provided to central government employees, as opposed to the previous 50 percent. How Much Salary Increased At Last DA Hike? 8 / 9 The basic salary of the employee is Rs 18,000 Dearness Allowance Hiked To 55 Percent: Pay increase of Rs 360 more per month New Dearness Allowance Annually: Rs 4,320 DA Hike Twice A Calendar Year 9 / 9 Dearness Allowance (DA) hikes are based on the average All India Consumer Price Index (CPI-IW) for industrial workers, which reflects changes in the cost of living. The government announces a DA/DR hike twice a year. However, the announcements are made in March and September. The hike is applied retroactively every year between January and July.
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.
News18
23-05-2025
- Business
- News18
8th Pay Commission: Can Expected 2.86x Fitment Factor Help Government Employees Beat Rising Expenses?
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. While the 8th Pay Commission would bring relief and hope to over 1 crore employees and pensioners, a more pressing question is surfacing among many: Will the currently expected fitment factor of 2.86x be able to keep up with the rising cost of living in the country?
