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India's 8th Pay Commission Approved: Potential for Significant Salary & Pension Hikes

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The Central Government has approved the 8th Pay Commission, which includes proposals to increase the fitment factor and promotions. This could lead to increased salaries, pensions, and the possibility of employees receiving 5 promotions.

8th Pay Commission: The Central Government has approved the formation of the 8th Central Pay Commission (CPC) to revise the allowances of approximately 5 million central government employees and 6.5 million pensioners. The fitment factor will be a crucial aspect of this pay commission, determining salary and pension increases. A final decision is expected by April 2025.

Increased Discussion on the Fitment Factor

The National Council - Joint Consultative Machinery (NC-JCM) has submitted a proposal to the government regarding the fitment factor. Shiv Gopal Mishra, Secretary of the NC-JCM, has demanded that the fitment factor be at least 2.57 or higher. Considering the current inflation, he suggested implementing a 2.86 fitment factor.

Potential Salary Increase if Demands are Met

The current minimum salary of ₹18,000 could increase to ₹51,480.
Pensions could rise from ₹9,000 to ₹36,000.

At Least 5 Promotions During Service

The 8th Pay Commission also proposes improvements to the Modified Assured Career Progression (MACP) scheme. If the government approves this, an employee could receive at least 5 promotions during their service.

Demand to Include DA in Basic Salary

Central government employees want Dearness Allowance (DA) to be included in the basic salary. Furthermore, they have demanded interim relief until the new pay commission is implemented.

New Formula for Minimum Wage Determination

The NC-JCM suggests that the 8th Pay Commission should determine the minimum wage based on 5 units of consumption, instead of 3. They also stated that earning employees should care for their dependent parents, as it is their legal responsibility under the Maintenance and Welfare of Parents and Senior Citizens Act, 2007.

What Do Reports Say?

Reports indicate that the implementation of the 8th Pay Commission could lead to significant increases in salaries and pensions for central government employees and pensioners. However, the final decision will be made only after government approval.

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