Central employees are awaiting the results of the eighth pay commission (8th Pay Commission) in the hope that the government will agree to increase the fitment factor, which will directly affect salary increases. The article examines changes in the salary structure from the first to the seventh pay commission and potential growth if the requirements of the eighth are implemented.
Workers' trade unions have put forward several demands to the government regarding the revision of salaries, pensions, and allowances. One of the key demands is to increase the fitment factor to 3.83, which plays a significant role in raising wages. The fitment factor is an indicator used by the central pay commission to transition from a previously established basic salary (or pension) to a new, adjusted structure. Changing this indicator leads to substantial fluctuations in the basic salary and pension.
The calculation formula is as follows: 'new basic salary: current basic salary x FF'. Currently, the fitment factor for central employees is 2.57, which led to an increase in the minimum basic salary from 7,000 rubles in the sixth pay commission to 18,000 rubles. If this factor is increased to 3.83, the minimum basic rate of 18,000 rubles will increase to approximately 68,940 rubles (18,000 x 3.83).
Reviewing the history of changes in the basic salary structure, the following stages can be traced:
The first pay commission was introduced in 1946, before India gained independence. According to state sources, it set the minimum basic salary for civil servants at 55 rupees per month and the maximum at 2,000 rupees per month.
In the second pay commission, which came into force in 1959, the minimum salary rose from 55 to 80 rupees per month. Additionally, the maximum basic salary increased by a thousand to 3,000 rupees.
The third pay commission was adopted in 1973, when the minimum basic salary for employees rose to 196 rupees per month, and the maximum basic salary was raised to 3,500 rupees.
The fourth pay commission was introduced in 1986, after which the minimum basic rate for central employees was raised by the government to 750 rupees per month, and the maximum basic salary sharply increased to 8,000 rupees per month.
Ten years later, in 1996, the government presented the fifth pay commission. In accordance with the fitment factor of 1.74, the minimum basic salary for employees was 2,550 rupees per month, and the maximum basic salary was increased to 26,000 rupees.
The sixth pay commission was introduced ten years later, in 2006. In this commission, the government set the fitment factor at 1.86, resulting in the minimum basic salary being raised to 7,000 rupees. The maximum basic salary for central employees also rose to 80,000 rupees.
After a ten-year period of the sixth system, the seventh pay commission came into force in 2016, marking a significant jump in salary increases. The seventh pay commission set the fitment factor at 2.57. Following this, the minimum basic salary reached 18,000 rupees per month, and the maximum basic salary was set at 2.5 lakh rupees. With the application of the 3.83 factor in the eighth pay commission, the minimum basic salary could sharply rise to approximately 69,000 rupees.
Nevertheless, the final parameters of the minimum basic salary under the eighth pay commission have not yet been approved. Information on salary increases will only become known after the commission presents its recommendations and the government makes a final decision through an official notification.
