8th Pay Commission: Although formal talks between the 8th Pay Commission and employee unions have been completed this week, in which the unions have demanded a salary of at least Rs 69,000 at a fitment factor of 3.83x. If this demand is accepted, it will mean an increase of 283 percent in the minimum salary of the employees.

At present, under the 7th Pay Commission, employees get a basic salary of at least Rs 18,000 every month, which was increased from Rs 7,000 under the 6th Pay Commission. In the meeting held in New Delhi from 28 to 30 April, the National Council (NC-JCM) had demanded a salary increase, change in the pay structure and more pension and allowances for about 36 lakh central government employees.

staff at work

The staff side of NC-JCM has demanded a fitment factor of 3.83, which is 126 basis points (bps) higher than the fitment factor of 2.57 under the 7th Pay Commission. If the demand for fitment factor of 3.83 is accepted, it will result in a salary hike of 283 percent.

This would mean that if someone’s basic salary is currently Rs 18000, then his salary will increase to around Rs 69000, whereas even the middle level salary may see a huge increase in all the pay bands.

What is fitment factor?

Fitment factor is a multiplier which is used to decide the new basic salary or pension for government employees and pensioners. If according to fitment factor If your existing basic salary is Rs 18,000 and the proposed fitment factor is 3.83, then the new basic salary will be = Rs 18,000 × 3.83 = Rs 68,940. The higher the fitment factor, the more the salary of the employees will increase, the effect of which will be visible on pension also.

Why is the demand for Rs 69,000 minimum wage being made?

Employee unions have proposed to fix the minimum basic salary at Rs 69,000. Earlier, under the 7th Pay Commission, the minimum salary was calculated on the basis of 3 members of the family (husband, wife and 2 children, which were considered as 2 units). Now the unions say that elderly parents should also be included in the family, due to which the family size increases to 5 units. This new demand for salary has been kept according to the expenses of 5 people.

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