By Admin 
8th pay commission: More than 1 crore employees and pensioners working under the central government are eagerly awaited for the implementation of the eighth pay commission, which was announced in January 2025. However, the commission has not been formed yet. Here, brokerage firms say that after its implementation, a big impact will be seen on the salary of government employees. In the research note of Ambit Capital and Kotak Institutional Equities, a possible fitment factor and how much the basic pay and salary will sit accordingly.
So much can increase salary
In the July 9 report of Ambit Capital, the fitment factor is estimated to be between 1.83 and 2.46 range. If the fitment factor is kept at 1.82, the salary may increase by 14 percent. At the same time, if it is placed in the range of 2.15, then the salary can increase by up to 54 percent in the salary of 34 percent and 2.46.
Kotak Institutional Equity has estimated a 13 percent increase in salary in the event of fitment factor 1.8. Let us see how much the salary of the central government employee who gets Rs 97,160 (including allowance) salary will increase on the basis of these fitment factories, based on the estimates of the 8th Pay Commission.
1.82 Factor (Ambit Base Case): Salary can increase by 14 percent to Rs 1,15,297.
2.15 Factor (Ambit Median Case): Salary can increase by 34 percent to Rs 1,36,203.
2.46 Factor (Ambit Upper Case): Salary can increase 54 percent to Rs 1,51,166.
1.8 Factor (Estimates of Kotak): Salary can increase by 13 % to about Rs 1,09,785.
Da will be ‘zero’
According to these estimates, the existing dearness allowance will become zero when the new Pay Commission is implemented, as was the last time. In 2016, when the 7th Pay Commission was implemented, the dearness allowance of 125 percent was merged into the basic pay, causing DA to become zero. The fitment factor applies to current basic salary. As soon as the old DA is found in the basic salary, DA will be reset and will become zero. The 2.57 fitment factor was recommended in the Seventh Pay Commission, which increased the minimum basic salary from Rs 7,000 to Rs 18,000. However, after resetting DA, only 14.3 percent hike was found.
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