Priyanka Tiwari
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8th Pay Commission Update: Construction of the 8th Pay Commission has been ordered and with that, speculations have begun regarding the changes that will take place in the salary structure of the government employees. As per media reports, National Council – Joint Consultative Machinery (JCM-NC) has asked for a better fitment factor of at least 2.57 or higher. It is worth mentioning that the fitment factor of 2.57 was also used in the Seventh Pay Commission. “Fitment factor should be at least 2.57 or higher”, JCM-NC Secretary Shiv gopal Mishra said according to NDTV.
What does fitment factor 2.57 mean?
As is known, the fitment factor is a means of escalations in the earnings of government employees. If the fitment factor of 2.57 is used for the 8th Pay Commission, government employees’ salary will be increased by 157% approximately. In other words, the current minimum wage of Rs 18,000 per month will become Rs 46260 per month. Also, the minimum pension which is now at 9000 needs to be revised to 23130 per month.
Fitment factor 2.57 was implemented in 2016.
The above mentioned fitment factor was introduced in 2016 and was accompanied with the Seventh Pay Commission. During that period, the base salary had boosted to Rs 18,000 per month from the previous Rs 7,000 per month. Some of the employees associations had proposed implementing fitment factor 2.86 with the Eighth Pay Commission. However, previous Finance Secretary Subhash Garg had said that this is like 'asking for stars from the sky.' This shows that it is quite challenging and does not seem achievable. He said that 1.92 fitment factor may be more realistic. If this indeed occurs, it will mean a minimum rise of 92 percent, increasing the base salary from 18,000 to 34,560.
What is behind the demand of JCM-NC for a fitment factor of 2.57 or more?
As stated by Shiv Gopal Mishra on NDTV Profit, he mentions that the reasoning behind having the fitment factor in the 8th Pay Commission 2.57 or more is because the older systems are completely obsolete. Mishra argues that the 7th Pay Commission implemented the 15th Indian Conference of 1957 ILC and Dr. Aykroyd's minimum standard of living wage formula. These standards do not exist anymore. The formula set by Dr. Aykroyd was only intended for essential purchases. Now, modern day necessities such as internet, mobile phones, insurance, and other investments have not been considered.
Demand to change the required family size from 3 to 5.
In the previous 7th Pay Commission, a family of three was considered to be sufficient. Recently however, with the introduction of the 8th Pay Commission, there is now an argument to expand this number so that dependent parents and other members are included. As is evident, inflation has increased tremendously and therefore the basic requirements of the general public have as well. Spending on education, healthcare, transportation, and even digital services has increased tremendously. With the 'Care of Parents and Senior Citizens Act, 2022' there is now greater emphasis given to the role of the family.
What date is the 8th Pay Commission implementing its suggestions?
The 7th Pay Commission is scheduled to end on December 31, 2025. This means it’s reasonable to assume that the new pay commission will start from January 1, 2026. But there is a chance that it might get delayed. On January 16, 2025, the Union Cabinet chaired by PM Narendra Modi sanctioned the formation of the 8th Pay Commission. He has not nominated its chairman, members, or other conditions yet. The 8th Pay Commission will most likely get to work in the same way the 7th Pay Commission did in 2016.
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