The Cabinet of Union, headed by Prime Minister Narendra Modi, has accepted the 8th Pay Commission to increase the salaries of central government employees. This decision, taken before the Union Budget of February 1, is to benefit nearly 50 lakh employees and 65 lakh pensioners including defence personnel.
The amount of the raise is still not known but one is expecting an increase in the fitment factor from 2.57 to 2.86. If this comes into effect then the minimum basic pay of government employees may rise from as low as ₹18,000 to as high as ₹51,480 per month. Employee unions had, however, asked for fitment factor of 3.68 during the 7th Pay Commission revision, a fitment factor of 2.57 was what the government accepted.
The fitment factor is a key multiplier in determining salaries and pensions, taking into account inflation, affordability and employee needs. Pay Commissions are established every decade to suggest alterations in the pay structure, allowances and perks of government employees.
Since 1946 there have been seven Pay Commissions and the last recommendations took effect from January 1, 2016. The approval of the 8th Pay Commission is a major step to resolving the issues of wages of employees, and based on the analysis of experts, there will be a significant change in government salaries and benefits in the coming months.
