8th pay commission: The time coming for all government job employees and pensioners can bring good news. The central government may soon implement the 8th Pay Commission i.e. Eighth Pay Commission. This commission is brought with the objective of improving the salary, pension and other financial benefits of the employees.
Every ten years a new pay commission is created so that employees can get proper salary according to inflation and changing economic conditions. The 7th Pay Commission was implemented in the year 2016, and now after about 10 years the need for the 8th Pay Commission is being felt.
How much salary can increase with 8th pay commission
According to many media reports and experts, the implementation of 8th Pay Commission may increase the salary of government employees by 30% to 34%. This increase will be based on the calculation method called “Fitment Factor”.
The fitment factor is a kind of coefficient, with the help of which a new basic pay is fixed. It is currently estimated that the new fitment factor may be between 1.83 and 2.46.
Understand the increase in salary with an example
Suppose an employee has an existing basic salary ₹ 18,000, then it can increase to ₹ 32,940 according to the coefficient of 1.83. On the other hand, if the coefficient of 2.46 is fixed, then the same salary can be up to ₹ 44,280.
Similarly, if the basic salary of an employee is ₹ 50,000, then the new salary can go from ₹ 91,500 to ₹ 1,23,000. This increase will affect not only the monthly salary but also on gratuity, pension and other benefits.
How much will the impact on the government treasury be
While the 8th Pay Commission is going to provide relief to the employees, the government may also have to face heavy financial burden due to this. Experts estimate that the implementation of this commission will cost more than ₹ 1.8 lakh crore on the central government treasury.
At present, there are more than one crore government employees and pensioners in the country, whose government will have to spend a lot on a total change in salary and pension.
How long can the commission apply
So far, the government has not made any official announcement regarding 8th Pay Commission, but it is expected that it can be implemented by 2026 or FY 2027.
The last i.e. 7th Pay Commission came into force in 2016. If the same pattern is repeated then the next salary modification is possible by 2026. This can be announced by the government in the coming time.
Effect and positive signal on economy
The increase in salary will not only benefit the employees, but it will also directly affect the economy of the country. Increasing salary will increase people’s spending capacity, which will increase demand in areas such as retail, automobile, real estate and travel.
Experts believe that if 8th Pay Commission is applied on time, it can also strengthen India’s GDP. At the same time, it can create new employment opportunities by promoting consumption in the country.
Pensioners will also get benefit
This commission will be beneficial not only for working employees, but also for pensioners. Pension is also decided on the basis of original salary. In such a situation, if the basic salary increases, then the pension will also increase the same proportion.
Retired employees will also improve their standard of living due to dearness allowance as well as permanent increase in pension.
8th Pay Commission Government employees and pensioners across the country have high expectations about it. If this commission applies on time, then it will not only bring a big change in salary structure but will also improve the economic status of millions of families.
Although the government will have to bear a big expense with this decision, but this will also speed up the country’s economic growth. Now the eyes are on the central government as to when it makes an official announcement on it and how long does the working class get this relief.
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