• Home
  • Business
  • 8th Pay Commission: Will fitment factor stay close to 2.57? Why a cautious approach is expected
8th Pay Commission: Will fitment factor stay close to 2.57? Why a cautious approach is expected

8th Pay Commission: Will fitment factor stay close to 2.57? Why a cautious approach is expected


8th Pay Commission: Will fitment factor stay close to 2.57? Why a cautious approach is expected
https://www.effectivecpmnetwork.com/n8j0x931t?key=a1c3b76def064e774f011dfbd445c040
Employee unions have sought a substantially higher fitment factor of 3.83. (AI image)

8th Pay Commission news: The Eighth Central Pay Commission is expected to adopt a measured approach while deciding the fitment factor, keeping in view the financial implications for both the Centre and the states as it moves into the concluding phase of consultations with state governments.The fitment factor remains the most significant component of the pay revision process, as it is used to calculate revised salaries and pensions by applying a multiplier to the existing basic pay and pension.Under the Seventh Pay Commission, the fitment factor was fixed at 2.57, raising the minimum basic pay from Rs 7,000 to Rs 17,990. The revision also increased the Centre’s revenue expenditure to 9.9% in FY2016-17, compared with 4.8% in FY2015-16.

8th Pay Commission Fitment Factor

Although the Commission is yet to finalise its recommendations, initial deliberations indicate that the fitment factor may remain broadly in line with the 2.57 multiplier recommended by the Seventh Pay Commission, despite continued demands from employee unions for a steeper revision.In their representations to the Commission, employee unions have sought a substantially higher fitment factor of 3.83, along with a minimum basic salary of Rs 69,000.“The exercise is now veering to discussions on the likely range of the fitment factor, consultations with state governments, and assessment of the fiscal impact of revised pay and pension structures,” a senior government official familiar with the discussions told ET.According to officials, the overall financial impact on the Union as well as state governments is expected to play a crucial role in determining the Commission’s final recommendations.The window for submitting memoranda closed on June 15, bringing to an end the formal representation process involving employee unions, pensioners and other stakeholders. The Commission will now examine these submissions along with feedback received from state governments, beginning with Uttar Pradesh, Odisha and West Bengal.The upcoming consultations follow earlier interactions conducted across Delhi, Ladakh, Jammu and Kashmir, Telangana, Maharashtra and several other parts of the country as part of the Commission’s nationwide stakeholder engagement exercise.After completing the remaining rounds of consultations, the Commission is expected to begin consolidating all the inputs before preparing its final report, which will outline the revised pay and pension framework for central government employees and pensioners.



Source link

Related Posts

US waives sanctions on Iranian crude: Here’s why Indian refiners are still hesistant to buy it

https://www.effectivecpmnetwork.com/n8j0x931t?key=a1c3b76def064e774f011dfbd445c040 A temporary US sanctions waiver has put Iranian oil back on the table, but will Indian refiners…

ByBySaartaj Jun 26, 2026

Corporate India may avoid the worst of the Middle East crisis if US-Iran truce holds: Crisil

https://www.effectivecpmnetwork.com/n8j0x931t?key=a1c3b76def064e774f011dfbd445c040 The Middle East conflict had triggered concerns across global markets as tensions around the Strait of Hormuz…

ByBySaartaj Jun 26, 2026

EU Regulator ESMA Warns of Crypto-Linked Financial Stability Risks

The European Securities and Markets Authority (ESMA) has addressed the risks linked to crypto assets at a time…

ByBySaartaj Jun 26, 2026

Mastercard, Kraken Team Up to Scale Card-Based Crypto Spending in UK, Europe

Mastercard is taking a significant step toward broadening the use of crypto assets across Europe and the UK.…

ByBySaartaj Jun 26, 2026

Leave a Reply

Your email address will not be published. Required fields are marked *

Scroll to Top