look news india
For Central Employees and Pensioners 8th Pay Commission The murmur regarding this has intensified. With the implementation of the new Pay Commission, the entire mathematics of basic salary, pension and allowances of more than 1 crore employees and pensioners is going to change. With the formation of the Pay Commission, major revisions can be seen on 5 main parameters.
1. Increase in Fitment Factor
The most important means of salary review is the fitment factor. In the 7th Pay Commission it was kept at 2.57. Employee unions demand that it be increased from 2.86 to 3.68 (or more under the 5-member family formula) in the 8th Pay Commission. This will lead to a tremendous increase in the minimum basic salary.
2. Big jump in minimum pay
At present the minimum basic pay under 7th CPC is ₹18,000 per month. If the fitment factor changes and the 5-member family standard is implemented, the minimum basic salary may cross ₹ 34,000 to ₹ 41,000 per month.
3. Pension Revision and 0% DR Reset for Pensioners
The minimum pension of pensioners (which is currently ₹9,000) is expected to increase to approximately ₹20,500 to ₹25,000. Additionally, once the new pay matrix is implemented, the existing Dearness Relief (DR) will be reset to zero (0%) and the new rates will be determined based on the new basic pension.
4. Merger of Dearness Allowance (DA) into basic pay
Whenever dearness allowance crosses the 50% limit, recommendations are made to merge it into the basic pay. Under the 8th CPC, a new salary structure will be created by adding the accumulated DA to the basic pay, which will directly increase the take-home salary.
5. Restructuring of Allowances (HRA & TA) and Pay Matrix
Major allowances like House Rent Allowance (HRA) and Travel Allowance (TA) will also be revised according to the new basic pay. There will be an increase in HRA based on the category of cities (X, Y, Z), which will provide great relief to the employees in the era of inflation.