Major Move for Central Employees
The government has formed the 8th Pay Commission, tasked with a full review of salaries, allowances and facilities for central government employees and pensioners. The official notification has already been issued, and the review is expected to influence the pay structure of millions of households.
What’s New This Time
Unlike earlier commissions that mostly increased pay based on inflation or seniority, this time the model may include performance-based components. According to experts, employees who perform well might benefit more. However, applying performance-based salary increases across a large government workforce will pose challenges, given varied roles and responsibilities.
The Salary-Doubling Formula
One of the key factors for setting basic pay is the “fitment factor”. Currently the minimum basic salary is ₹18,000 with a 58% Dearness Allowance, making total roughly ₹28,440. If the 8th Pay Commission sets the fitment factor at 2.0, basic pay could rise to about ₹36,000, effectively nearly doubling for current minimal-salary employees. Experts estimate the factor could range from 1.83 up to 2.46, which may translate into as much as a 55% hike. Additionally, allowances such as HRA, travel and medical would also rise, boosting total income rather than just basic pay.
Who Will Benefit
The 8th Pay Commission will not only cover “regular” central government employees but also industrial and non-industrial staff, members of defence forces, officers of All-India Services (IAS/IPS), staff of union territories, audit & judiciary service employees, and pensioners. The review will also include both the Old Pension Scheme and the National Pension System (NPS) with possible improvements in gratuity or death benefits under NPS.
