More than seven months have passed since the 8th Pay Commission was formed in January. Given 18 months to submit its report on pay structure of central government employees, the panel is actively conducting consultations and meetings with various stakeholders.
After completing these discussions and review over the remaining 11 months, it will prepare and submit its final recommendations. The commission was approved to revise salaries of nearly 50 lakh central government employees and allowances for around 65 lakh pensioners. The 7th Pay Commission, formed in 2016, is set to end in 2026.
Demands regarding higher fitment factor, dearness allowance, pension reforms, etc continue to echo via different representative bodies. These groups have argued that the panel must consider dignity during retirement, inflation, surging cost of living while assessing the pay structure.
As a result, the demand for a higher fitment factor is rising, with some expectations going as high as 4.0. For those uninitiated, the fitment factor is a multiplier used in Pay Commissions to revise the basic salary. It is applied to the existing basic pay to calculate the new revised pay structure.
In the 7th Pay, the fitment factor was accepted as 2.57. If this time, it is accepted as 4.0, this would mean that the entry level salary in the 7th Pay of Rs 18,000 would become: Rs 18,000x4 = 72,000. This demand has been raised by the Bharatiya Pratiraksha Mazdoor Sangh (BPMS).
Other bodies such as Maharashtra Old Pension Scheme Employees Organisation, National Council (JCM) Staff Side (NCJCM Staff Side), among others have also raised similar demands.
How Things Stand 7 Months After Panel Setup:
So far, meetings have been held in cities including Pune, Hyderabad, Ladakh, Jammu and Kashmir and New Delhi. On May 29, the Commission issued a notification extending the last date for submission of memoranda by stakeholders to June 15. It also clarified that this is the final deadline and no further extension will be granted. The extension gives employee unions and stakeholders more time to submit recommendations.
ALSO READ: 8th Pay Commission: Big Pension Change Proposed For Senior Citizens; Check Age-Wise Benefits
Additionally, the Commission has announced a series of upcoming consultation visits across India. As per official notices, the Commission will visit Lucknow, Uttar Pradesh on June 22 to 23 June. It will then visit Bhubaneswar, Odisha on July 6 to 7 July and Kolkata, West Bengal on July 9-10. The Commission is expected to announce details of more visits in other cities soon.
In the consultations so far, employee unions have demanded higher annual salary increments.
Discussions so far with key stakeholders, including defence and railway unions in Delhi, have focused on pension reforms, Dearness Allowance issues, faster promotions, etc.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.