8th Pay Commission Report: Under the 8th Pay Commission, the increase in the salary of employees may be less than previously. According to a premier fitness research organization, this time the increase should be roughly 13 percent as compared with the 14.3 percent increase that was recorded under the 7th Pay Commission. The report issued by Kotak Institutional Activities states that there is an option for a decrease in the fitment factor. It is said that this can be brought down to 1.8, which will mean a reduction of almost 30 percent.
Employee Organizations Demand That The Fitment Factor Should Be kept At 2.57
HS Tiwari, Secretary-General of All India Accounts Committee, said employee organizations will demand that the fitment factor of 2.57 be retained before the Pay Commission and that it is hoped the factor can be somewhat reduced in the Eighth Pay Commission. Currently, a minimum basic pay as prescribed by the 7th Pay Commission stands at Rs 18000 per month, which is expected to be raised in the 8th Pay Commission to Rs 32000 per month. Therefore, the fitment factor should be fixed at 1.8.
Possible Increase Of Around 3% In Gross Basic Salary
Report further says that if dearness allowance and some other allowances are added, then basic pay could be increased by as much as 13%. For example, with a basic of Rs 18000, dearness allowance in the range of Rs 9900 can also be payable. When considered that the basic pay is Rs 50000, then the basic pay will be increased by one point eight as the fitment factor. It can go up to Rs 90000, while the allowances may not increase as much; and the total salary, with a 55% dearness allowance, is expected to be around Rs 77500-monthly. Some old allowances can also be revoked.
Dearness allowance Can Go Close To 60%
According to this report, by the time the Eighth Pay commission is implemeted, the dearness allowance actually climbs to above 60%. It is worth mentioning that the Seventh Pay Commission is also going to have an expiration of 10 years, note that this pay was approved in July of 2017. This Pay Commission caused the government to spend an extra Rs 1 lakh crore into the central treasury.
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