Prime Minister Narendra Modi-led Union Cupboard authorised the structure of the eighth Pay Fee to revise the salaries of central authorities staff, Union Minister Piyush Goyal introduced earlier this 12 months. Though the federal government has authorised the formation of the Fee, an official notification has not but been issued.
The Pay Fee, usually constituted each 10 years, revises salaries and allowances based mostly on the fitment issue.
eighth Pay Fee: What’s the fitment issue?
Salaries, pensions, and allowances are revised beneath pay commissions utilizing the fitment issue. This key multiplier determines salaries and pensions for presidency staff. It’s set by contemplating numerous elements corresponding to inflation, worker wants, and authorities affordability.
Presently, the wage construction for central staff is predicated on the seventh Pay Fee fitment issue, which got here into impact in 2016.
eighth Pay Fee: How does the fitment issue affect salaries?
The present Pay Fee utilized a fitment issue of two.57 per cent. Nonetheless, this doesn’t imply salaries elevated by 2.57 instances, because it was solely added to the fundamental pay, elevating it to a minimal of ₹18,000. The precise enhance within the salary element was 14.3 per cent. Notably, DA is reset to zero at first of the brand new Fee, because the index is re-based. That is anticipated to occur beneath the eighth Pay Fee as effectively.
eighth Pay Fee: Wage construction of presidency staff
The wage of a authorities worker consists of primary pay, dearness allowance (DA), home lease allowance (HRA) and transport allowance. The fundamental wage of employees constitutes 51.5 per cent of their complete earnings. DA accounts for roughly 30.9 per cent, HRA for about 15.4 per cent and journey allowance for round 2.2 per cent, as Mint reported earlier, citing a report by Ambit Institutional Equities.
eighth Pay Fee: Who’re the beneficiaries?
The eighth Pay Fee is predicted to profit almost 50 lakh central government employees, together with defence personnel. After the revision, almost 65 lakh central authorities pensioners, together with defence retirees, are anticipated to profit.
