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A big and useful news is coming for the central employees. Under the 7th Pay Commission, currently central employees get annual increment at the rate of 3% every year. But different unions of employees believe that this increase of 3 percent is very less. At this pace, it takes more than 10 years for the basic pay of the employees to double.

In view of this, employee organizations have presented their recommendations before the 8th Pay Commission. Their demand is that this annual increment should be increased from 3% to at least 5% to 7%.

Employees’ organizations also say that if the annual increment is increased to 5% and Dearness Allowance (DA) is merged with the basic pay as soon as it reaches 25%, then there will be a huge increase in the take-home salary of the employees.

Which organization asked for how much increment from the 8th Pay Commission?

Various employee unions have given their recommendations regarding annual increment in their memorandums submitted to the 8th Pay Commission:

(Source: Official memorandum submitted to the 8th Pay Commission)

If the increment increases from 3% to 6%, how much will be the benefit?
According to estimated data and calculations of Bankbazaar, if the 8th Pay Commission fixes the fitment factor of 2.1 and increases the increment rate from 3% to 6%, then in the next 10 years, employees can get additional benefit of lakhs of rupees in their basic pay.

1. Benefits for Level 1 employees

• Current Basic Pay: ₹18,000.00
• 2.1 Revised Basic Pay after Fitment Factor: ₹37,800.00

According to the calculations, a Level 1 employee will also get an additional ₹ 7.79 lakh only as basic pay in 10 years at 6% increment and 2.1 fitment factor.

2. Benefits for Level 4 employees

• Current Basic Pay: ₹25,500.00
• 2.1 Revised Basic Pay after Fitment Factor: ₹53,550.00

This benefit becomes larger as the pay level increases. Level 4 employees can get additional benefits of up to ₹ 11.04 lakh in total basic pay in 10 years.

3. Benefits for Level 6 employees

• Current Basic Pay: ₹35,400.00
• 2.1 Revised Basic Pay after Fitment Factor: ₹74,340.00

Even for Level 6 employees, a 6% increment instead of 3% will add up to a huge amount over a period of 10 years.

4. Benefits for Level 8 employees

• Current Basic Pay: ₹47,600.00
• 2.1 Revised Basic Pay after Fitment Factor: ₹99,960.00

Level 8 officers and employees can get a total additional basic salary of up to ₹ 20.60 lakh in 10 years with 2.1 fitment factor and 6% annual increment. Keep in mind, if the fitment factor in the 8th Pay Commission is fixed more than 2.1, then this benefit will increase even more.

Basis and conditions of calculation:

Basic Salary: As per the existing pay matrix of 7th Pay Commission.

Revised Basic Pay: Existing Basic Pay × 2.1 (Approximate Fitment Factor).

Annual Increment: At the rate of 6% on revised basic pay.

Total benefit for 10 years: (Total basic salary for 10 years at 6% increment) – (Total basic salary for 10 years at 3% increment).

(Note: These figures are only approximate and indicative, based on the probable fitment factor and increment rate. The actual salary change will depend on the final recommendations of the Pay Commission and the decision of the Government.)

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