Central Employees Likely to get Big Salary and Pension Hike…

It has also been observed that the year 2025 will be a good year in terms of promotions, increments for central government employees. Since January 2016, when the 7^th Pay Commission was implemented, employees are expecting the 8^th Pay Commission after the completion of nine years from then. This new commission could in fact deliver many advantages for such workers whereby he or she could be able to earn better salaries and pensions.

The expectations of employees for salary increase

It has been learnt that the Government could likely roll out the fitment factor of 2.86 through the 8^th Pay Commission. Such change could increase employees’ wages to almost three times their present wages. For instance, an employee could earn ₹18,000 as minimum basic wage under the 7^th Pay Commission, but rise to ₹51,480 under the new framework.

Fitment Factor Over the Years

The fitment factor which was awarded in the 7^th Pay Commission was fixed at 2.57. Previoulsy under the 6^th Pay Commission, the fixed pay was ₹7,000, enhanced to ₹18,000 under the 7^th Pay Commission. These two regularly rise and fall according to the new pay commission and the fitment factor is very vital determining the quantity of salaries and pension that need to be added.Retirement is an inevitable stage in the life of every employee and therefore pension benefits for retired employees should be considered by companies.

The new fitment factor is likely to work in favour of the retired employees as well has been explained above. To be precise, the current Pension rate is ₹9,000/- only to telephone exchanges. If the factor is made to 2.86, pensions could touch ₹25,740, according to the proposal to bring some cheer to pensioners.

Additional Benefits

This 8^th Pay Commission may also modify the regulations of allowances such as Dearness Allowance (DA) and others increasing the total income of employees as well as pensioners.

While the government has not made an official statement yet, the 8^th Pay Commission will be an important move towards the improvement of the financial position for government employee and pensioners.