Basic salary will increase 3 times due to 8th Pay Commission! Why are laddus bursting in the minds of government employees?

8th Pay Commission: Central government employees are in tears. Many have even started planning to buy a house, car etc. You must be wondering what happened suddenly. In fact, Prime Minister Narendra Modi on Thursday approved the formation of the Eighth Pay Commission to revise the salaries of central employees and allowances of pensioners. Information and Broadcasting Minister Ashwini Vaishnav said, “The Prime Minister has approved the Eighth Central Pay Commission for central government employees.” The Chairman and two members of the Commission will be appointed soon. The Minister said that starting the process of constituting the new Pay Commission in 2025 will ensure that its recommendations are received and implemented before the completion of the tenure of the Seventh Pay Commission. Can be reviewed.

Sources said that this step will benefit about 50 lakh central government employees including those working in the defense sector. Besides, there will be an increase in the pension of about 65 lakh pensioners. This will benefit approximately four lakh employees in Delhi alone. These include defense and Delhi government employees. Sources said that generally, the salary of Delhi government employees increases with the Central Pay Commission.

What is the fitment formula?

Seventh Pay Commission Fitment Factor was 2.57. Due to this, the basic salary was increased from Rs 7 thousand to Rs 17,990. If this formula is considered as the basis, then the minimum salary under the maximum range of fitment factor in the 8th Pay Commission will be Rs 26,000. Employees unions and other organizations are demanding to keep it between 2.86 to 3 in the Eighth Pay Commission. If this demand is accepted, there will be a 180% increase in salary. According to reports, the minimum base pay may be increased to Rs 34,650 in the Eighth Pay Commission, which is Rs 17,990 in the Seventh Pay Commission. At the same time, pension can be increased from Rs 9,000 to Rs 17,280. However, this is only a possibility.

Fitment factor is the coefficient through which salary and pension are revised. The 7th Pay Commission had suggested a fitment factor of 2.57, due to which the minimum pay increased from ₹ 7,000 to ₹ 17,990. Now it remains to be seen how much fitment factor will be kept in the 8th Pay Commission. The Chairman of the Pay Commission will present his recommendations by 2026. This will be known only in that. The Seventh Pay Commission was constituted in 2014 and its recommendations came into effect from January 1, 2016. Its term is ending in 2026.

After how many years does the change occur?

Usually, every 10 years the Central Government constitutes a Pay Commission to revise the salaries of its employees. Seven pay commissions have been constituted since 1947. The Pay Commission holds extensive consultations with the Central and State Governments and other concerned parties before making recommendations to the Government. Pay Commission plays an important role in deciding the salary structure, benefits and allowances for government employees. Most of the units owned by state governments implement the recommendations of the Commission. Under the Seventh Pay Commission, there was an increase of Rs 1 lakh crore in expenditure in the financial year 2016-17.

Salary journey started from Rs 55

So far seven pay commissions have been constituted. His tenure and main recommendations are as follows: …

Government employee vs private employee

Before the implementation of the recommendations of the Seventh Pay Commission, IIM Ahmedabad had compared the salaries of government employees and private sector employees. In this he had found that the salary of the lower ranking government employees is higher than that of the private sector. For example, if we talk about the driver, the difference was up to double. According to this study conducted in 2015, the average salary of a government driver at that time was around Rs 18 thousand, which was almost double the market rate at that time. But if we talk about the salary of government officials, then corporate managers win in this matter. In this study before the recommendation of the Seventh Pay Commission, the salary of a government officer starts from Rs 58100. The salary of Joint Secretary was 1.82 lakh, that of Secretary was 2.25 lakh and that of Cabinet Secretary was 2.5 lakh. But the big thing in this is that if you add allowances and bungalows then it will increase many times. For example, the rent of the Cabinet Secretary’s bungalow in Lutyens Zone is obviously more than his salary. In such a situation, if allowances and salary are added, then government employees are more happy.