The salary and pension of the employees will increase since the approval of the 8th Finance Commission by the Central Government. How much fitment factor will be applicable. It is being estimated. Now a report of Kotak Institutional Equities has received the answer to all these things. According to the report, this time the increase in salary is about 13%, which is less than the 7th pay commission. There was an increase of about 14.3% at the time of 7th pay commission.
How much salary will increase?
According to the report, if the Fitment Factor 1.8 is finalized, the basic salary will increase directly by 80%, ie the existing basic pay will be multiplied by 1.8. At present, the minimum basic salary of central employees is Rs 18,000, which can increase to around Rs 32,000 but if you are thinking that your salary will increase by 80%, then it is not the whole. Actually, Dearness Allowance (DA), which is 55% of the basic salary right now, will be reduced to zero after this pay commission and will be re -increased later.
Understand by the example, if your basic salary is Rs 50,000, then it will increase to about Rs 90,000. But at present, a DA of about Rs 27,500 is also available with your Rs 50,000 basic pay, due to which the total salary becomes about Rs 77,500. Due to the removal of DA, the total increase will be less visible. Apart from this, DA grows every six months and it can cross 60% until the 8th pay commission is implemented.
Members of the Staff Side of the National Employees Forum (National Council-Joint Consultative Machinery) have already indicated that they want the fitment factor at least as much as the 7th pay commission. But it is believed that the government will remain stuck on the 1.8 fitment factor.
Due to the 7th Pay Commission, the government had a burden of Rs 1.02 lakh crore in 2017-18. At the same time, according to the Kotak Report, the government’s pocket will have an additional burden of Rs 2.4 to 3.4 lakh crore on the implementation of the 8th pay commission.
Grade C employees will get benefit
Grade C employees will be the biggest benefit of 8th pay commission. Because these classes are about 90% of the total government employees of the country, their salary will directly improve their lifestyle. The Kotak report states that this step will also have a positive impact in the country’s economy as these employees will spend more than their increased income.