North India Statesman
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The Central Government has approved the 8th Pay Commission, which will increase the salary and pension of more than 1 crore central government employees and retired people. These changes are expected to be implemented from January 1, 2026.
Pay Commission’s main focus: Fitment Factor: The main focus of the 8th Pay Commission is on the ‘Fitment Factor’, which is an indicator number used for salary modification. This fitment factor in the 7th Pay Commission was 2.57. However, it is expected to be increased to 2.86 in the 8th Commission. If it is implemented, the minimum basic salary will increase from ₹ 18,000 to ₹ 51,480 per month and the minimum pension will increase from ₹ 9,000 to ₹ 25,740. On this, the final decision will be taken by the members of the Commission.
The expected change in salary and allowances The Pay Commission may amend other allowances including house rent allowance (HRA) and traveling allowance (TA), in addition to the original salary, the location of the posting and the nature of the work. Due to the difference in allowances, there may be a difference in total salary for two employees in the same pay scale.
Impact on NPS and CGHS schemes: National Pension System (NPS): Currently, central government employees contribute 10 percent of their basic salary and dearness allowance (DA) to NPS, while the government contributes 14 percent. If the salary is increased by the 8th Pay Commission, then the amount of these contributions will also increase. Central Government Health Scheme (CGHS): CGHS membership rates are linked to pay scale. If the salary is increased, the CGHS fee will also be revised according to the new pay structure.
The expected salary increase in various pay scales has been estimated to be estimated on the fitment factor of 2.28 for the expected salary increase for various pay scales. Some examples are as follows: Grade 2000 (Level 3): The basic salary will increase to ₹ 57,456. The total salary including HRA and TA will be ₹ 74,845. After the deduction, the salary in the hand will be around ₹ 68,849. Grade 4200 (Level 6): The revised basic salary will be ₹ 93,708. The total salary will be ₹ 1,19,798 and after the deduction, the salary in hand will be around ₹ 1,09,977. Grade 5400 (Level 9): The basic salary will increase to ₹ 1,40,220. The total salary will be ₹ 1,81,073, and the salary in hand will be around ₹ 1,66,401. Grade 6600 (Level 11): The revised basic salary will be ₹ 1,84,452. The total salary will be ₹ 2,35,920, and the salary in hand will be around ₹ 2,16,825.
