8th Pay Commission: How much will employees in UP, MP, Chhattisgarh, and Jharkhand benefit from the 8th Pay Commission?
8th Pay Commission: The most important basis for calculating salary increases is the fitment factor. This factor determines how many times an employee's current basic salary will increase. In simple terms, the new salary is determined by multiplying the old basic salary by the fitment factor.
8th Pay Commission: Amidst expectations of significant relief for central government employees and pensioners from the 8th Central Pay Commission, state government employees are also now looking forward to salary revisions. The biggest question is whether state employees will also receive the same salary and pension increases as the central government employees, and when they will receive the arrears.
What does the 8th Pay Commission timeline suggest?
The central government has already clarified that the recommendations of the Pay Commission are usually implemented every 10 years. Following this tradition, the government has indicated that the recommendations of the 8th Central Pay Commission may be effective from January 1, 2026. According to the government statement, this will be the date from which the revised salaries and pensions will be calculated, even if it is formally implemented later.
When will state employees receive the salary increase?
It is not legally mandatory for state governments to implement the recommendations of the Central Pay Commission. On this subject, Ramachandran Krishnamurthy, Director of Payroll Services at Nexdigm, says: “Some states implement the central government's recommendations within 6 months to 1 year, while in many states, this process takes 1 to 3 years. This is because most states form their own separate pay commissions to assess the financial impact.” This means that state employees may have to wait a little longer for the salary increase.
What are the indications for employees in Uttar Pradesh?
In Uttar Pradesh, the period of the 7th Pay Commission ends on December 31, 2025, which is the same as the period of the Central Pay Commission. Therefore, there is a possibility that state employees may be entitled to arrears from January 1, 2026, provided the state government implements the new recommendations. The important point is that the longer the delay in implementing the revised salaries or pensions, the more arrears are paid to the employees and pensioners for the entire period.
Will all states increase salaries like the central government?
There is no straightforward answer to this question. Not all state governments implement the recommendations of the central government's pay commission as is. Each state decides on salary and pension revisions, keeping in mind its economic situation, fiscal deficit, sources of revenue, and financial priorities. This is why the number and terms of pay commissions vary across different states. For example, Kerala has constituted its 11th State Pay Commission, while Karnataka is still under the purview of the 7th Pay Commission. This makes it clear that the states' salary policies do not necessarily have to align completely with the central government's.
What is the fitment factor, and why is it important?
The fitment factor is the most important basis for calculating salary increases. This factor determines how many times an employee's current basic salary will increase. In simple terms, the new salary is determined by multiplying the old basic salary by the fitment factor. Therefore, the higher the factor, the greater the salary increase.
The 7th Central Pay Commission set a fitment factor of 2.57. This meant that the basic salary received under the 6th Pay Commission was increased by approximately 157 percent. However, at the same time, the Dearness Allowance (DA) was made zero, due to which the actual increase felt by the employees was less than expected.
Different formulas in the states
State governments have also adopted fitment factors according to their own calculations. For example, Uttar Pradesh implemented a fitment factor of 2.57, similar to the central government, while Punjab set a slightly higher multiplier of 2.59. This makes it clear that the formula for salary revision can vary in different states, and the increase received by state government employees can be more or less than that received by central government employees.
What to expect from the 8th Pay Commission? According to salary experts, considering the current inflation rate and the rising cost of living, the fitment factor in the 8th Pay Commission is likely to be between 2.6 and 3.0. However, the final decision will be taken by the government. If such a high fitment factor is implemented, it could lead to a significant increase in employees' basic salaries, higher pensions and arrears for pensioners, and considerable financial pressure on state governments.
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