Central Government approval for the setting up of the 8th Pay Commission has created ripples of excitement among government employees. The majority are dreaming of lavish salary hikes by the time the newly implemented pay structure comes into force.
However, this will not be true for all departments, as some employees would remain excluded from the 8th Pay Commission salary hike, and their payscales would remain unchanged.
This article shall touch on who among the employees would not receive the benefits of the 8th Pay Commission and also speculate on how much of a salary increase the eligible employees would eventually receive.
Employees Excluded from the 8th Pay Commission
At present, India continues to work under the 7th Pay Commission, which came into being in 2016, as constituted in 2014. Historically, a new Pay Commission comes into existence once a decade, whereas the first one was established in 1946.
However, the forthcoming 8th Pay Commission is not going to apply to all the government employees, and some will remain without any salary revision.
Here is how employees would come under the new pay structure:
- Public Sector Undertakings (PSUs) Employees – Workers employed in government corporations fall under separate wage policies.
- Autonomous Bodies – The pay scale applied is different from having independent governing structures.
- Judges of High Courts & Supreme Court – Their salary and allowances shall be determined by separate law provisions.
These employees, therefore, do not attract the recommendations by the Pay Commission. Their salaries shall, therefore, remain untouched by the recommendations of the 8th Pay Commission.
Predicted Salary Hike Under the 8th Pay Commission
For the deserving employees, the salary hike will depend on two main factors:
- Fitment Factor
- Revised Allowance
Reports indicate that the fitment factor in the 8th pay commission may range from 1.92 to 2.86. If applied, it will considerably increase basic pay from ₹18000 to ₹51000.
What is the Fitment Factor?
The fitment factor is the multiplier that adjusts government officials’ salaries and pensions. It is multiplied by the existing basic pay to develop the revised salary structure.
Example Calculation:
If the current basic salary of a government employee is ₹15,500 and the fitment factor is 2.57, the revised salary would be:
- ₹15,500 × 2.57 = ₹39,835
Final thoughts
The pay commission would help a large part of the society; however, one must find out whether he or she would be covered under it or not. No changes will be made to the pay structure of employees in PSUs, autonomous bodies, and the judiciary. Others can hope that the new revised fitment factor brings a sizeable salary raise, improving financial stability.