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8th Pay Commission: What is the fitment factor and how does it affect the salary? Know here

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8th Pay Commission: What is the fitment factor and how does it affect the salary? Know here

8th Pay Commission: Modi government has approved the formation of 8th Pay Commission to increase the salary of central government employees. However, the official notification has not been issued yet. Now the question is what is the fitment factor and how will it affect your pocket?

8th Pay Commission: Modi government has approved the formation of 8th Pay Commission to increase the salary of central government employees. This information was given by Union Minister Piyush Goyal a few months ago. However, the official notification has not been issued yet.

A pay commission is formed once every ten years, which recommends an increase in salary and allowances. The most important thing in this is the fitment factor.

What is the fitment factor?

The fitment factor plays a big role in deciding the salary, pension and allowances of government employees. It can be considered a kind of multiplier, with the help of which the new salary is decided. This factor is decided keeping in mind things like inflation, the need of the employees and the capacity of the government.

The current salary structure is according to the 7th Pay Commission, in which the fitment factor was kept at 2.57.

What is the effect of fitment factor on salary?

People often think that 2.57 means the salary has increased by two and a half times, but it is not so. This factor applies only to basic pay. In the 7th Pay Commission, the basic salary was increased to at least ₹ 18,000. Overall, the salary increased by an average of 14.3%.

It is worth noting that when the new Pay Commission is implemented, the Dearness Allowance (DA) starts from zero again, because the index is reset. The same is expected to happen in the 8th Pay Commission.

Salary structure of government employees

The salary of any government employee consists of four parts:

  • Basic pay
  • Dearness Allowance (DA)
  • House Rent Allowance (HRA)
  • Transport Allowance

According to a report:

Basic pay is about 51.5% of the salary.

DA is about 30.9%.

HRA is about 15.4%.

And transport allowance is about 2.2%.

Who will benefit from the 8th Pay Commission?

About 50 lakh central government employees, including defense personnel, will benefit from the 8th Pay Commission. Apart from this, about 65 lakh pensioners, including retired soldiers, will also get direct benefit from it.

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