Minimum basic salary will increase from Rs 18,000 to Rs 69,000?
8th Pay Commission: Amidst the ever increasing inflation and household expenses, relief news is emerging for the central employees. The stir regarding the 8th Pay Commission has intensified and there is talk that there may be a bumper increase in the minimum basic salary of the employees. At present, the basic pay which is Rs 18,000, has been proposed to be directly increased to Rs 69,000. That means, a big increase of Rs 51,000 in one go. This figure may sound surprising, but employee organizations have presented solid logic and a new economic mathematics behind it. Let us understand in detail how this demand arose and whether the government will really approve it.
From 18 thousand directly to 69 thousand..what is the complete mathematics of the new formula?
The entire structure of salary increase depends on the ‘fitment factor’. This decides how much the salary and pension graph will rise in the future. The National Council-Joint Consultative Machinery (NC-JCM), representing the interests of the employees, has put forward a strong proposal before the government. Under this proposal, there has been a demand to increase the basic salary from Rs 18,000 to Rs 69,000. If we understand it in percentage or times, then it is about 3.83 times the current salary. On this basis, employee unions have suggested a new fitment factor of 3.833, so that a common employee can properly support his family in the era of rising inflation.
Family size and new diet… this is how a new expenditure blueprint was prepared.
The demand for such a sudden increase has not been made out of thin air, rather there is a changed lifestyle and scientific basis behind it. The first major change has been made in the calorie standard. Now the expenditure is being calculated on the basis of the new diet plan of 3,490 calories decided by the Indian Council of Medical Research (ICMR). The second and most important change is regarding the size of the family. Earlier in the Pay Commission calculations, three members in a family were considered, but now it has been increased to a family of five members. Obviously, when the number of members in the family increases and the standard of diet changes, the bill for ration, milk, fruits, vegetables and other daily needs will also become huge. To arrive at this exact expenditure, data of average prices of essential goods has been collected from government stores of major cities like Delhi, Mumbai, Bengaluru, Pune and Hyderabad.
Will the government accept all the conditions? The figures are giving these indications
The demands of the employees are in place, but the big question is whether the Finance Ministry will accept this huge proposal as it is? If we look at the history of the previous Pay Commission i.e. 7th Pay Commission, the picture looks a little different. Even at that time, employee organizations had strongly demanded a fitment factor of 3.71, but then the government, assessing the fiscal deficit and the burden on the economy, had limited it to 2.57. In such a situation, this time also it is considered certain that there will be long talks between the government and employee organizations and some changes may definitely be seen in the figures before the final seal is given.
When will the employees get this salary?
The question in everyone’s mind is when will this new salary structure be implemented. According to the current timeline, after the formation of the 8th Pay Commission, it may take time till May 2027 to submit its detailed report. After the report comes, the government will study it thoroughly and it will take additional time of 3 to 6 months to implement it. If the entire process continues as scheduled without any hindrance, then the increased salary will start being credited to the bank accounts of central employees in the second half of the year 2027.
Also read- EPFO: How much pension will private employees retiring in 2026 get? Do calculations like this
