New Delhi
The 8th Central Pay Commission (CPC) for government employees and pensioners is going to be implemented from 1 January 2026. This will increase salary, pension and allowances of more than one crore central government employees and pensioners. The news of the benefits received by this commission has become a matter of considerable discussion among government employees. Come, let us know how much salary increase the employees should expect from this Pay Commission and what is the method of calculation.
8th Pay Commission and Aycroid Formula
The 8th Pay Commission, like the 7th Pay Commission, will follow the Aycroid formula for salary and pension increase. Under this formula, the salary of employees is determined according to the needs of their life. It was developed by Dr. Walls Aycroid, whose main objective was to decide the minimum wage required for any worker keeping in mind its nutritional needs.
The Aycroid formula determines the minimum wage for a laborer, his wife and two children. The formula was adopted by the Indian Labor Conference (ILC) in 1957 and has been being used since then for the minimum wage determination.
7th Pay Commission Impact
The minimum original salary was increased from ₹ 7,000 to ₹ 18,000 using the Aycroid formula in the 7th Pay Commission. Also, a fitment factor was included in it, which increased the salary. Under this, a fitment factor was implemented as 2.57, which reviewed the salary of the employees.
Possible change in 8th pay commission
Now that the 8th Pay Commission is going to come, it is being expected that it will also follow the Aycroid formula, but there may be some changes. According to reports, this time the fitment factor can be considered between 1.92 and 2.86. If the maximum fitment factor, ie 2.86, is adopted, the minimum basic salary can increase from ₹ 18,000 to ₹ 51,480, which will be a major increase. Apart from this, pension may also increase, and is expected to reach ₹ 9,000 to ₹ 25,740.
Importance of fitment factor
The Fitment Factor is a coefficient that is used to determine the increase in salary and pension. It is multiplied by the current salary or pension amount. Although the percentage of salary growth has not been decided yet, but from the suggestions of the previous commissions, we can guess that this time also the salary of employees can increase well.
7th Pay Commission and Acroid Formula
According to the report of Financial Express, the 7th Pay Commission used the minimum basic salary for central government employees from Rs 7,000 to Rs 18,000 using Acroid Formula.
Nearly a decade ago, the 7th Pay Commission implemented a fitment factor of 2.57 to update the salaries and pension of the employees and pensioners of the Central Government. This fitment factor and Acroid Formula based salary matrix is effective since the implementation of the recommendations of the 7th Pay Commission in 2016.
How much salary will increase under the 8th Pay Commission on this formula?
It is believed that an acroid formula will be adopted under the 8th Pay Commission, so that it can be ensured whether the salary of government employees is appropriate according to today’s inflation or not? Reports say that the government may consider the fitment factor between 1.92 and 2.86. If the high end of the boundary, 2.86, is selected, the minimum basic salary for government employees can potentially increase to Rs 51,480, which is much higher than Rs 18,000. Apart from this, pension can increase by Rs 9,000 to Rs 25,740.
Fitment factor
The calculation fitment factor of salary and pension hike is decided by multiplying the current minimum wage or pension amount. What percentage will the salary increase under the 8th Pay Commission? It is not clear right now. It is expected that the central government will soon announce the structure of the 8th Pay Commission, which will include a chairman and two members.
