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The Eighth Central Pay Commission (8th CPC) for central employees and pensioners remains the biggest and most talked about topic at the moment. The Commission is currently engaged in the consultation process. Under this, direct talks are being held with the Central Government, Union Territory employees, pensioners, their unions and other stakeholders across the country.

The Commission is making an in-depth study of what changes are necessary and practical in the employees' salary structure, fitment factor, pay matrix, dearness allowance (DA), dearness relief (DR), house rent allowance (HRA) and benefits like increment or promotion. During this, administrative needs, efficiency and special requirements are also being kept in mind.

Decision on the fate of more than 1 crore people

These recommendations of the Pay Commission will have a direct and positive impact on the pockets of more than 1 crore people of the country. These include more than 50 lakh serving central government employees and about 65 lakh pensioners. This figure also includes railway, defense forces personnel and retired personnel.

You will be surprised to know that central government employees and armed forces personnel constitute only 0.7 percent of India's total workforce of 60 crores, but their contribution in the organized sector (formal sector) of the country is about 9 percent.

What is the demand of employees regarding fitment factor?

Employee and pensioner organizations are demanding implementation of different fitment factors ranging from 1.83 to 3.83. However, at present the 8th Pay Commission has not announced any official fitment factor. It will be implemented only after the recommendations of the Commission get the final approval from the Central Government.

In simple words, fitment factor is the multiplier or coefficient which the Pay Commission uses to convert the old basic pay or pension into the new and revised salary structure.

Basic Formula: Existing Basic Pay × Fitment Factor = New Basic Pay

For example, a fitment factor of 2.57 was implemented in the 7th Pay Commission (7th CPC). Due to this, the minimum basic pay of the employees at that time directly increased from ₹ 7,000 to ₹ 18,000.

How much will your new basic pay change due to 2.57 fitment factor?

If the same fitment factor of 2.57 is considered applicable in the 8th Pay Commission as in the 7th Pay Commission, then there will be a huge increase in the basic salary according to different pay matrix levels:

• Level 7: The current basic pay of 7th CPC is ₹44,900, which when multiplied by 2.57 comes to approximately ₹1,15,393 It is possible
• Level 10: The current basic pay of 7th CPC is ₹56,100, which is expected to increase in 8th CPC. ₹1,44,177 Can reach.
• Level 13: The current basic pay of 7th CPC is ₹1,23,100, which is revised to around ₹1,23,100 in 8th CPC. ₹3,16,367 It is possible
• Level 18: The highest basic pay of 7th CPC is ₹2,50,000, which jumps to ₹2,50,000 in 8th CPC. ₹6,42,500 Can reach the level of.

How much will be the impact on the lowest and highest rungs?

If the 8th Pay Commission decides to implement only the fitment factor of 2.57, then the minimum basic pay of an employee working at the lowest level (Level 1) will increase from ₹18,000. ₹46,260 Will be done. At the same time, at the highest level of administrative service (Level 18), this basic pay jumps from ₹ 2.5 lakh. ₹6.42 lakh Will reach to.