If the proposed recommendations are implemented, the economic condition of millions of employees may see significant improvement.
Experts believe that this pay commission may bring a ‘lottery’ like effect for employees, as it is expected to increase income and benefits at many levels.
1. Big jump in basic salary
The biggest change may be in the minimum basic pay. It is estimated that the current salary level may see a manifold increase, which will make a big difference in the monthly income.
2. Modification in Fitment Factor
Increasing the fitment factor will have a direct impact on the total salary of the employees. This amendment is considered to be the most important basis for salary increase.
3. Improvement in Dearness Allowance (DA)
In view of inflation, changes in the calculation of DA are possible, due to which employees can get relief amid rising prices.
4. Benefits to pensioners
There is also a possibility of revision in the pension of retired employees. This can increase the monthly income of lakhs of pensioners.
5. Gratuity and Retirement Benefits
The new Pay Commission is also expected to improve the lump sum benefits received at the time of retirement such as gratuity.
6. Increase in medical and other allowances
There is also a possibility of improvement in health facilities and other allowances, which will provide better security to the employees and their families.
7. Digital reforms in salary system
Digital systems can be strengthened to make the salary payment and pension process more transparent and faster.