8th Pay Commission Update
Central government employees and pensioners are eagerly waiting for the 8th Pay Commission. The Modi government has already given the green signal for its implementation. However, employees and pensioners still have many doubts regarding the salary hike. In the 7th Pay Commission, the salary was not increased as much as the employees had demanded. But this time, all employees and pensioners are hopeful for a significant salary hike.
The Indian government has recently announced the formation of the 8th Pay Commission, sparking discussions about potential salary revisions for government employees. According to media reports, the National Council-Joint Consultative Machinery (JCM-NC) has recommended that the fitment factor should be set at a minimum of 2.57 or more. It is worth noting that the same fitment factor of 2.57 was implemented under the 7th Pay Commission. According to NDTV, JCM-NC Secretary Shiv Gopal Mishra has reiterated the demand for a fitment factor of at least 2.57 or higher.
What Does Fitment Factor 2.57 Mean?
The fitment factor is a calculation methodology used to determine the salaries of government employees. If a fitment factor of 2.57 is adopted under the 8th Pay Commission, it would result in a salary increase of approximately 157% for government employees. For instance, under the current system, the minimum salary is Rs 18,000 per month, which would increase to Rs 46,260 per month if the fitment factor remains at 2.57. Similarly, the minimum pension, which is currently Rs 9,000 per month, would rise to Rs 23,130 per month under the new pay structure.
Implementation of Fitment Factor 2.57 in 2016
Previously, under the 7th Pay Commission, the fitment factor of 2.57 was implemented in 2016. This decision led to a significant increase in the minimum salary, which rose from Rs 7,000 per month to Rs 18,000 per month.
At present, some employee organizations have been advocating for a higher fitment factor of 2.86 under the 8th Pay Commission. However, former Finance Secretary Subhash Garg has dismissed this demand, stating that it is equivalent to “asking for stars from the sky.” He suggested that such a demand is highly unrealistic and practically unfeasible. Instead, he proposed a fitment factor of 1.92, which he believes is a more viable option.
If the fitment factor is set at 1.92, the minimum salary will still witness a substantial increase of 92%, rising from Rs 18,000 to Rs 34,560 per month.
Why is JCM-NC Demanding a Fitment Factor of 2.57 or More?
According to NDTV Profit, Shiv Gopal Mishra of JCM-NC has emphasized that the fitment factor under the 8th Pay Commission should be at least 2.57 or higher. He pointed out that the old standards used to determine salary structures are no longer relevant in today’s economic scenario. The 7th Pay Commission had adopted the principles of the 15th Indian Labour Conference (ILC) of 1957 and Dr. Aykroyd’s formula for determining the minimum living wage. However, these standards have become outdated due to evolving economic and social conditions.
Dr. Aykroyd’s formula was primarily based on the prices of essential commodities. However, in today’s digital era, several other expenditures such as internet costs, mobile expenses, insurance, and investment-related expenses have significantly increased. These factors were not considered in previous pay commissions. As a result, employee organizations believe that the fitment factor should be increased to accommodate these modern-day financial obligations.
Demand to Expand Household Needs from Three to Five Members
Under the 7th Pay Commission, the consumer needs of a family were calculated based on a three-member household. However, employee unions are now advocating for this standard to be revised under the 8th Pay Commission to include a five-member household. This change aims to incorporate the financial responsibilities of parents and dependent family members. Rising inflation and increasing living expenses have placed a heavier financial burden on households. Costs related to education, healthcare, transportation, and digital services have increased substantially.
Additionally, the ‘Maintenance and Welfare of Parents and Senior Citizens Act, 2022’ has further reinforced the responsibility of individuals to care for their aging parents. Given these changes, government employees argue that the minimum salary should be revised accordingly to reflect these added financial obligations.
When Will the 8th Pay Commission Recommendations Be Implemented?
The tenure of the 7th Pay Commission is set to conclude on December 31, 2025. Consequently, the recommendations of the 8th Pay Commission are expected to come into effect from January 1, 2026. However, experts believe that there might be delays in the implementation process, which could extend the timeline for salary revisions.
On January 16, 2025, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved the formation of the 8th Pay Commission. However, details regarding the appointment of the commission’s chairman, members, and specific terms of reference are yet to be announced. Given that the 7th Pay Commission was implemented in 2016, it is widely anticipated that the 8th Pay Commission will be executed in a similar timeframe, most likely in 2026.
Conclusion
The formation of the 8th Pay Commission has reignited discussions about potential salary hikes for government employees. The key demand from employee unions is to set the fitment factor at a minimum of 2.57 or higher, which would result in significant salary increases. While the government is still finalizing details related to the commission, employees are hopeful that their demands will be considered in light of increasing financial obligations and modern-day expenses. The final decision will play a crucial role in shaping the financial well-being of millions of government employees across the country.