8th Pay Commission: Will the minimum salary really become ₹69,000? All eyes on the 3.83 fitment factor
8th Pay Commission: Central government employees have proposed a minimum salary of ₹69,000 under the 8th Pay Commission. All eyes are currently fixed on the 3.83 fitment factor in this regard.
8th Pay Commission News: Employee organizations representing central government employees have demanded that the 8th Pay Commission raise the minimum basic pay to ₹69,000 and set the fitment factor at 3.83. However, the government has not yet approved these demands. Before the government makes a final decision, the 8th Pay Commission will consider these demands and submit its recommendations.
Currently, central government employees receive a minimum basic pay of ₹18,000 under the 7th Pay Commission. The National Council-Joint Consultative Machinery (NC-JCM), which represents central government employees, has proposed setting the minimum basic pay at ₹69,000 under the 8th Pay Commission.
What is the calculation behind the ₹69,000 salary?
The fitment factor plays a crucial role in determining employee salaries. The minimum salary of ₹18,000 received by employees under the 7th Pay Commission is based on a fitment factor of 2.57. Now, employee organizations are demanding a fitment factor of 3.83. If the current minimum basic pay (₹18,000) is multiplied by the proposed fitment factor (3.83), the resulting figure is ₹68,994 (approximately ₹69,000).
Why is there a demand for a 3.83 fitment factor?
Employee unions are demanding that the 'family unit' used for salary calculations be expanded from 3 members to 5 members (employee, spouse, two children, and parents). Given rising inflation and the increasing cost of living, a basic salary of ₹18,000 is no longer sufficient.
Alongside the demand for a minimum wage hike, pensioner organizations have also proposed raising the minimum monthly pension from ₹9,000 to ₹45,000.
By how much were salaries increased under previous Pay Commissions?
| Pay Commission | Fitment Factor | Minimum Basic Salary |
|---|---|---|
| 5th Pay Commission | 1.74 | ₹2,550 |
| 6th Pay Commission | 1.86 | ₹7,000 |
| 7th Pay Commission | 2.57 | ₹18,000 |
| 8th Pay Commission (Proposed) | 3.83 | ₹69,000 (Approx.) |
What is the government's stance?
Raising the minimum wage from ₹18,000 to ₹69,000 would pose a major challenge for the central government, as it would place a massive financial burden on the national exchequer and pension expenditure. Experts believe the government might set the fitment factor between 2.6 and 3.0. A final decision on this will only become clear following the official recommendations of the Pay Commission chairman and the committee, and subsequent Cabinet approval.
