
The implementation of the new Pay Commission will benefit over 50 lakh central government employees and around 65 lakh pensioners. The basic salary of level-1 central government employees may increase from ₹18000 to ₹44000. The commission may apply a fitment factor of 2.46.
How much can the salary increase in the 8th Pay Commission?
The additional amount in basic salary depends on the fitment factor and DA merger. In the 7th Pay Commission, the fitment factor was 2.57. In the 8th Pay Commission, it may be 2.46.DA starts from zero in every pay commission. This is because the new basic salary is already increased keeping in mind the inflation. After this, DA increases again gradually.
Currently DA is 55% of basic salary. With the removal of DA, the total salary increase (basic + DA + HRA) may appear slightly lower, as 55% of DA will be removed.
Example:
Suppose you are at level 6 and your current salary as per 7th Pay Commission is:
Basic Salary: ₹35,400
YES (55%): ₹19,470
HRA (Metro, 27%): ₹9,558
Total Salary: ₹64,428
If fitment 2.46 is implemented in the 8th Pay Commission, the new salary will be as follows:
New basic salary: ₹35,400 x 2.46 = ₹87,084
DA: 0% (reset)
GAME (27%): ₹87,084 x 27% = ₹23,513
Total Salary: ₹87,084 + ₹23,513 = ₹1,10,597
What is fitment factor?
This is a multiplier number, which is multiplied by the current basic salary to get the new basic salary. The Pay Commission decides it after taking into account inflation and cost of living.Why might the 8th Pay Commission take until 2028?
Each pay commission usually takes two to three years from setup to implementation. There are still three months left for the completion of 2025.Even if the commission is formed quickly, it will take time to prepare the report, get government approval and finalize everything. A look at previous commissions also shows a similar pattern.
Just because it will be fully implemented by 2028, doesn't mean its benefits will be available only from 2028. Pay Commissions come every 10 years.
The 7th Amendment came into effect in 2016, while the 8th Amendment's "effective date" is January 1, 2026. This means that salary and pension increases will be calculated from this date.
When was the last Pay Commission formed and implemented?
Fifth Pay Commission: It was constituted in April 1994. The report was submitted to the government in January 1997, but the recommendations were implemented from January 1, 1996. Earlier there were 51 pay scales, but it was reduced to 34.Important link:::
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Sixth Pay Commission: It was constituted on 20 October 2006. The report was prepared in March 2008 and submitted to the government. The report was approved in August 2008 and the recommendations came into effect from 1 January 2006.
Seventh Pay Commission: It was constituted in February 2014 and the terms of reference were finalized by March 2014. The report was submitted in November 2015. The government approved it in June 2016, and the recommendations came into effect from January 1, 2016.
Sixth Pay Commission: It was constituted on 20 October 2006. The report was prepared in March 2008 and submitted to the government. The report was approved in August 2008 and the recommendations came into effect from 1 January 2006.
Seventh Pay Commission: It was constituted in February 2014 and the terms of reference were finalized by March 2014. The report was submitted in November 2015. The government approved it in June 2016, and the recommendations came into effect from January 1, 2016.