8th Pay Commission: Big Discussion On Pay Matrix On Feb-10! At Fitment Factor 2.86, How Salary Will Be Hiked?

8th Pay Commission: Big recommendations are likely to have been discussed on February 10, as the official body of employee union leaders and bureaucrats, the National Council of the Joint Consultative Machinery were reportedly scheduled to meet on Monday. The NC-JCM is headed by Union Cabinet Secretary TV Somanathan. The meeting was to discuss matters related to 8CPC such as pay matric, salary, retirement, fitment and pension benefits among others. Since the fitment factor is at 2.57 under 7CPC, reports have stated that NC-JCM is likely suggesting a fitment factor not less than 2.86 under 8CPC.

Shiv Gopal Mishra, the NC-JCM staff side secretary and All India Railwaymen's Federation chief has reportedly forwarded his suggestions under 8CPC.

Mishra recommends revising pay structure, salary, and retirement benefits under 8CPC. These should be in accordance with the recommendation of the 15th Indian Labour Conference and take into consideration the Dr Aykroyd formula.

What is Dr Aykroyd's formula?

This formula was used for determining pay matrix under 7CPC.

Dr Wallace Aykroyd, a nutritionist, emphasised that a balanced diet, including both proteins and fats, was crucial for workers. His recommendation for a daily intake of 2,700 calories aimed at ensuring that workers received sufficient nutrition to sustain moderate physical activity, as pointed out by Angel Broking.

Further, the brokerage highlighted on its website that the Aykroyd formula considers workers' nutritional needs alongside their basic living expenses like food, clothing, and housing. It was endorsed by the 15th Indian Labour Conference (ILC) in 1957 to establish fair wage norms, taking into account the needs of a worker's family.

In its concluding remark, Angel Broking's blog said, "As the 8th Pay Commission takes shape, the legacy of the 7th Pay Commission's approach to salary structuring remains significant. The focus on fairness, nutritional standards, and the welfare of government employees laid a solid foundation for future salary and pension revisions. As we await the new panel's recommendations, it's clear that a balance between fiscal responsibility and employee welfare will continue to be a guiding principle for future salary structures."

8th Pay Commission Salary Hike:

While speaking to NDTV Profit, Mishra said that before the 8th Pay Commission's formation was approved by the Centre, had stated that he was expecting a fitment factor of "not less than 2.86" for the next revision of salaries.

If the fitment factor of 2.86 is announced by the government, then the basic pay of level 1 government employees will rise by a whopping 186%.

Another recommendation by the NC-JCM staff was to merge the levels under the pay matrix. Such as the Level 1 and Level 2 could be merged together, while the same could be applied to Levels 3 and 4, and Level 5 with 6.

However, the 2.86 fitment factor is seen to be a high number by many experts. In media, some of the experts have suggested rather 2.08 fitment factor, or 1.92.

In the case of a fitment factor of 1.92, the minimum pay of level 1 employees will rise by 92%, while the surge would be a whopping 108% under a fitment factor of 2.08.

Noteworthily, the pay matrix, calculation and dearness allowance under the 8th Pay Commission is not been officially announced. GoodReturns.In also could not confirm the below expectations of pay matric under the 8th Pay Commission.

The first Pay Commission in India was introduced in January 1946, a year before Independence, however, its main report was submitted to the interim government in May 1947. Maintaining a 10-year gap, the second Pay Commission followed in August 1957, and so on. The current pay matrix is 7th CPC which was announced with a meager increase in salary of 14%.

While India awaited with bated breaths the new recommendations under 8CPC, let's take a brief glance at recommendations and benefits under 7CPC.

7th Pay Commission:

Salary Structure: The minimum basic salary was increased to Rs 18,000 from Rs 7,000. The fitment factor was 2.57, which led to a salary hike of 23%-25% across employees.

Pension Hike: Pensions also saw a significant increase to Rs 9,000 from earlier Rs 3,500 per month under 7CPC.

Allowance: In 7CPC, the dearness allowance was increased to 53% last year, to offset the impact of high inflationary pressures on government employees' salaries.

Other Benefits: There was also a health insurance scheme announced for these employees and pensioners under 7CPC.