How much will the income increase after the implementation of the 8th Pay Commission, know what are the expectations

8th Pay Commission: The research note of Ambit Capital and Kotak Institutional Equities has estimated the possible fitment factor and how much the basic pay and salary will be according to this.

8th Pay Commission: More than 1 crore employees and pensioners working under the central government are eagerly waiting for the implementation of the Eighth Pay Commission, which was announced in January 2025. However, the commission has not been formed yet. Here, brokerage firms say that after its implementation, there will be a big impact on the salary of government employees. The research note of Ambit Capital and Kotak Institutional Equities has estimated the possible fitment factor and how much the basic pay and salary will be according to this.

Salary can increase by this much

Ambit Capital's July 9 report has estimated the fitment factor to be between 1.83 and 2.46. If the fitment factor is kept at 1.82, then the salary can increase by 14 percent. On the other hand, if it is kept in the range of 2.15, then the salary can increase by 34 percent and if it is kept in the range of 2.46, the salary can increase by up to 54 percent.

Kotak Institutional Equity has estimated a 13 percent increase in salary if the fitment factor is 1.8. Let us see how much the salary of a central government employee who is currently earning a salary of Rs 97,160 (including allowances) will increase based on these fitment factors, based on the estimates made by the 8th Pay Commission-

1.82 factor (Ambit base case): Salary may increase by 14% to Rs 1,15,297.

2.15 factor (Ambit median case): Salary may increase by 34% to Rs 1,36,203.

2.46 factor (Ambit upper case): Salary may increase by 54% to Rs 1,51,166.

1.8 factor (Kotak estimate): Salary may increase by 13% to around Rs 1,09,785.

DA will become 'zero'

According to these estimates, the current dearness allowance will become zero when the new pay commission is implemented, as happened during the last revision. When the 7th Pay Commission was implemented in 2016, the dearness allowance of 125 percent was merged into the basic pay, due to which the DA became zero. The fitment factor applies to the current basic salary. As soon as the old DA is merged into the basic salary, the DA will be reset and become zero. A fitment factor of 2.57 was recommended in the 7th Pay Commission, due to which the minimum basic salary increased from Rs 7,000 to Rs 18,000. However, after resetting the DA, only a hike of 14.3 percent was received.