Good News! Central Government Employees to Get Bigger Hike in 8th Central Pay Commission

Good news for the Central government employees! The 8th Central Pay Commission (CPC) is on the government’s table. The Central government is in talks with key departments across the Ministry of Home Affairs, the Ministry of Defence, the Department of Personnel and Training, and state governments to set up the CPC. The 8th Pay Commission is slated to set up officially, and based on its recommendations, it will be clearer as to how the pay structure of the Central government employees would be revised. It comes after the 7th Pay Commission’s recommendations, which were implemented in 2016 and came into effect from January 1, 2016.

As per the CPC’s recommendations, the salary is revised based on the fitment factor, which is x times of basic pay to derive the revised salary. The 7th CPC recommendations had a fitment factor of 2.57.

According to media reports, it is expected that the new fitment factor under the 8th CPC could be in the range of 1.92 and 2.86. To be precise, a higher fitment factor would mean a bigger hike in salary across pay grades (1900, 2400, 4600, 7600, 8900). For instance, under the 8th CPC, the potential salary increase of an employee with the basic pay of Rs. 40,000 at the fitment factor of 2.57 would be about Rs. 1,0,2800.

The estimated revised fitment factor is expected to affect House Rent Allowance (HRA), which is 24% of basic pay with varying rates between tier cities and regions, Transport Allowance (TA) varying between Rs. 3,600 and Rs. 7,200 across levels, National Pension System (NPS) at 10% of basic and Central Government Health Scheme (CGHS).

Here’s is the estimated revised salary based on the projected fitment factor of 1.92 and 2.57 for grade pay 1900:

At 1.92 fitment factor:

Basic: Rs 54,528 | HRA: Rs 13,086 | TA: Rs 3,600

Gross: Rs 71,215 | NPS: Rs 5,453 | CGHS: Rs 250

Net: Rs 65,512

At 2.57 fitment factor:

Basic: Rs 72,988 | HRA: Rs 17,517

With inputs from India.com