8th Pay Commission: Big shock for government employees! Salary will increase only this much in 8th Pay Commission..

Ever since the Central Government approved the 8th Pay Commission, estimates are being made on how much the salary and pension of the employees will increase and how much fitment factor will be applicable. Now, a report by Kotak Institutional Equities has given the answer to all these questions. According to the report, this time the salary hike is going to be around 13%, which is less than the 7th Pay Commission.

How much will the salary increase?

According to the report, if the fitment factor of 1.8 is finalized in the 8th Pay Commission, then the basic salary will increase directly by 80%, that is, the current basic pay will be multiplied by 1.8. At present, the minimum basic salary of central employees is Rs 18,000, which can increase to about Rs 32,000, but if you are thinking that your salary will increase by 80%, then this is not the whole truth. Actually, Dearness Allowance (DA), which is currently 55% of the basic salary, will be made zero after this pay commission and will be increased again later.

Let us understand with an example. Suppose if your basic salary is Rs 50,000, then it will increase to around Rs 90,000. But currently, along with your basic pay of Rs 50,000, you also get DA of about Rs 27,500, which makes the total salary around Rs 77,500. Due to the removal of DA, the total increase will be less. Apart from this, DA increases every six months, and by the time the 8th Pay Commission is implemented, it may cross 60%.

Staff side members of the National Employees Forum (National Council-Joint Consultative Machinery) have already indicated that they want the fitment factor to be at least as much as the 7th Pay Commission. But it is believed that the government will stick to the 1.8 fitment factor.

The 7th Pay Commission had put a burden of Rs 1.02 lakh crore on the government in 2017-18. At the same time, according to the Kotak report, after the implementation of the 8th Pay Commission, the government's pocket will have an additional burden of Rs 2.4 to 3.4 lakh crore.

Grade C employees will get the benefit
The biggest benefit of the 8th Pay Commission will be to the Grade C employees. Because this class is about 90% of the total government employees of the country, the increase in their salary will directly improve their lifestyle. The Kotak report says that this step will also have a positive impact on the country's economy because these employees will spend more than their increased income.

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