The Center employs people at eighteen different levels. Each employee's or pensioner's level will determine the 8th Pay Commission compensation increase. This is the anticipated increase in their pay.
The Eighth Pay Commission The 8th Pay Commission, which the Narendra Modi-led cabinet passed in October, is expected to enhance the pay and pensions of thousands of central government workers and retirees.
The 8th Central Pay Commission (CPC) has already been appointed by the government, and its proposed new salary and pension regulations will go into effect on January 1, 2026.
Since the 7th Pay Commission is scheduled to end on December 31, 2025, central government employees and pensioners will probably enjoy a significant pay raise and pension increase starting on January 1, 2026.
Every ten years, the Center establishes a Pay Commission to update employees' base pay and benefits, as well as pensions for retired workers, which affects millions of people's lives throughout India.
The Commission will modify the Dearness Allowance (DA) to account for inflation in addition to pay increases.
Will all pay increases be the same?
There are eighteen tiers of personnel under the Center. The level of the employee or pensioner will determine the 8th Pay Commission compensation increase. These workers' base compensation varies depending on their level.
What are the eighteen tiers of government workers?
Level 1: Group D and entry-level workers
Levels 2–9: Workers in Group C
Levels 10–12: Workers in Group B
Levels 13–18: Workers in Group A
Cabinet secretaries and other high-level government officials are part of Group A.
The fitment factor, which determines how much overall pay will increase, is a significant feature in the 8th Pay Commission compensation hike.
Fitment factor: what is it?
The new CPC multiplies the new basic pay by the fitment factor. To calculate the fitment factor, the 8th Pay Commission will consider a number of criteria, including inflation.
A fitment factor of 2.57 was employed by the current Pay Commission. However, as it was only added to basic pay, this does not imply that the overall salary increase was 2.57 times, as Mint previously claimed.
Experts are debating three potential fitting factors: 1.92 (conservative), 2.15 (moderate), and 2.57 (optimistic), according to a Times Now story. The size of the pay increase increases with the fitting factor.
The base pay under the 7th Pay Commission was:
Level 1: ₹18,000
Level 5: ₹29,200
Level 10: ₹56,100
Level 15: ₹1,82,200
Level 18: ₹2,50,000
How much would each level of employee's salary increase under the 8th Pay Commission?
The following formula will be used to determine the 8th Pay Commission compensation increase:
Current Basic Pay x Fitment Factor = Revised Basic Pay
The pay increase will be as follows if the fitment factor is 1.92 (conservative):
Level 1: ₹34,560
Level 5: ₹56,064
Level 10: ₹1,07,712
Level 15: ₹3,49,824
Level 18: ₹4,80,000
This is the least amount of salary growth that is anticipated.
The pay increase will be as follows if the fitting factor is 2.15 (moderate):
Level 1: ₹38,700
Level 5: ₹62,780
Level 10: ₹1,20,615
Level 15: ₹3,91,730
Level 18: ₹5,37,500
The pay increase will be as follows if the fitting factor is 2.57 (optimistic):
Level 1: ₹46,260
Level 5: ₹75,044
Level 10: ₹1,44,177
Level 15: ₹4,68,254
Level 18: ₹6,42,500
According to reports, this is the most compensation increase that an employee may anticipate.
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