8th Pay Commission Update: Will we get 6% annual increment instead of 3%? Know the demands of employee organizations, the effect of 2.1 fitment factor and how ₹ 20 lakh extra can come into your account.
8th Pay Commission Latest Update: The 8th Pay Commission can be very special for Central Government Employees. This time there may be a significant increase in his salary. If everything goes as per the demands of the employees, then just a small change in the rules of annual increment can drastically increase your basic salary by up to Rs 20 lakh. Let us know what is this whole mathematics of 3% increment and how and by how much the salary of the employees can increase…
What is the matter of 3% increment in 8th Pay Commission?
Currently, under the 7th Pay Commission, there is an increment of 3% in the basic salary every year. But employee organizations say that this increase is now decreasing considerably. Therefore, he has demanded from the 8th Pay Commission to increase the annual increment to 5%, 6% and in some cases up to 7%. If this demand is accepted, there could be a difference of lakhs of rupees in the basic salary of the employees in the next 10 years. Some categories of employees are estimated to get additional basic pay up to Rs 20.59 lakh.
Which organization demanded how much increase?
According to the official memorandum, different employee organizations have given different suggestions.
NC-JCM (National Council of Joint Consultative Machinery)- 6% annual increment
AIDEF (All India Defense Employees’ Federation)- 6%
FNPO (Federation of National Postal Organisations)- 6%
AINPSEF (All India New Pension Scheme Employees Federation)- 7%
IRTSA (Indian Railways Supervisors’ Association)- 5%
What would be the benefit if there is 6% increment in 8th pay commission instead of 3%?
Financial website BankBazaar has released an estimate based on 2.1 fitment factor and 6% annual increment. It tells how much extra benefit there can be in the basic salary of employees in 10 years.
Level-1 employee
The current basic of employees of this level is Rs 18,000. If you get 6% increment instead of 3%, then you can get additional basic pay of around Rs 7.79 lakh in 10 years.
Level-4 employee
Level 4 employees with the existing basic salary of Rs 25,500 are expected to get additional basic salary of around Rs 11.03 lakh.
Level-6 employee
According to the calculation, one can get about Rs 15.31 lakh more basic pay in 10 years. The current basic of these employees is Rs 35,400.
Level-8 employee
The biggest advantage is shown in this category. According to estimates, additional basic salary of about Rs 20.59 lakh can be received in 10 years. The current basic of employees of this level is Rs 47,600.
Note: All these figures are estimates. The actual salary will depend on the fitment factor and annual increment decided by the 8th Pay Commission.
Demand for DA merger also
Employee organizations have not stopped just at increasing increments. Their another big demand is that as soon as Dearness Allowance (DA) crosses 25%, it should be immediately merged into Basic Pay. If the government accepts both the 6% increment and DA merger, then there will be a historic jump in the salaries of central employees. However, this calculation is based on an estimate of 2.1 fitment factor. If the government keeps the fitment factor higher than this, then this benefit can be much more than Rs 20 lakh.
What decision has the government taken now?
At present, no final decision has been taken by the government on increasing the annual increment from 3% to 5%, 6% or 7%. The suggestions of employee organizations have been sent to the 8th Pay Commission. Now the picture will become clear only after the recommendations of the commission and the final decision of the government.
Disclaimer: This news is based on the recommendations of employee organizations and approximate calculations given by BankBazaar. No final decision has been taken yet by the 8th Pay Commission on annual increment, fitment factor or salary increase. The actual salary increase will be decided only after the official recommendations and approval of the government and the 8th Pay Commission.