Will the salary double as soon as the 8th Pay Commission is implemented? Know the new formula

8th Pay Commission India: The Central Government has taken a step forward in the direction of the 8th Pay Commission. The Central Government has approved the terms of reference. Former Supreme Court judge Justice Ranjana Prakash Desai has been appointed chairman of the commission.

The commission will submit its report to the government in 18 months. After which, after getting the approval of the Union Cabinet, there will be an increase in the salary of employees and pensioners under the 8th Pay Commission. Since the arrival of this news, employees are demanding information as to how much their salary will increase after the implementation of the new pay commission.

Fitment Factor and other allowances

Under the 7th Pay Commission, the fitment factor was fixed at 2.57 by the government. Now it remains to be seen how much fitment factor the government will keep in the 8th Pay Commission. The fitment factor has a direct impact on the basic salary of the employees. For example, if the basic salary of an employee is Rs 20,000 and the government this time keeps the fitment factor at 2.60, then the new basic salary of that employee will be Rs 52,000. The new fitment factor decided by the government is multiplied by the basic pay of the employee’s old pay commission.

In this way the new basic pay of central employees is decided. How much the salary will increase in the new pay commission mainly depends on the fitment factor. Also, if there is an increase in the basic pay of an employee, it impacts other allowances as well.

For example, rent allowance is directly related to basic pay. That means it will definitely increase. At the same time, the commission can also recommend to the government for increase in transport allowance and other allowances. These will also increase after a few days of government approval.

Will the salaries of employees double?

Nexdigm Director (Payroll Services) Ramachandran Krishnamurthy told the media that, if the basic salary of an employee is Rs 50,000 and under the 8th Pay Commission, the government decides the fitment factor of 2.0, then the basic salary of the employee will become Rs 1 lakh. However, thereafter the revised pay matrix will place the employees in the nearest higher cell. At the same time, if the fitment factor is 2.0, then the basic pension of pensioners getting pension of Rs 30,000 can increase to about Rs 60,000.

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