8th Pay Commission: 14.3% increase or 140% salary hike? How did the ₹69,000 salary figure come into the spotlight? Find out...

Central government employees and pensioners are increasingly curious about the Eighth Pay Commission. Meanwhile, there's talk that employees' salaries could be directly increased from ₹18,000 to ₹69,000. Since employee unions are demanding a fitment factor of 3.833, the potential for a 140% salary increase has been reached. But will this increase actually be implemented? This is the question on employees' minds.

What is the demand for a fitment factor of 3.833?

A fitment factor of 2.57 was implemented in the Seventh Pay Commission. Now, employee unions are demanding a fitment factor of 3.833 for the Eighth Pay Commission. The fitment factor is used to calculate the new basic salary based on the old salary.

The current basic salary is ₹18,000. Multiplying this by 3.833 gives ₹68,994. This means that, based on this demand, the basic salary could be around ₹69,000. However, this figure is based on the demands of employee unions and has not been officially approved by the government.

How did the figure of 140 percent salary increase come about?

Let's assume your current basic salary is ₹18,000 and your dearness allowance is 60%. In this example, the dearness allowance is ₹10,800. Therefore, the total amount of your basic salary and dearness allowance is ₹28,800.

Now, if we compare this amount with the proposed basic salary of ₹69,000, the difference is ₹40,200. Calculating the percentage of this difference results in an increase of approximately 139.6 percent. Consequently, the figure of a 140 percent increase has been discussed.

Will the salary really increase by 140 percent?

No one can be certain about this information, as the fitment factor of 3.833 and the basic salary of ₹69,000 have not yet been officially approved. Furthermore, the 14.3 percent actual salary increase in the Seventh Pay Commission and the 140 percent increase in the current calculation are calculated on different bases. Therefore, it would be incorrect to conclude that employees will receive a 140 percent salary increase. The actual salary increase will only be clear after the final recommendations of the Eighth Pay Commission and the government's decision.

PC: Cgimpact