Central workers and pensioners have put forward significant demands during the eighth pension commission meeting. If these demands are met and the formula from the seventh pension commission meeting is applied, the total salary of employees and pensioners could increase substantially.
Previously, at the seventh pension commission meeting, a fitment factor of 2.57 was established, which allowed the minimum basic rate to increase from 7,000 to 18,000 rupees. Now, for the eighth pension commission meeting, trade unions are insisting on a fitment factor ranging from 3.61 to 4.00.
Based on a 4.0 fitment factor calculation, the basic salary will increase fourfold: the minimum basic rate of 18,000 rupees will rise to 72,000 rupees. A similar increase is expected for the basic pension amount.
If we take the example of a basic pension of 15,000 rupees, after applying the fourfold fitment factor, the amount will rise to 60,000 rupees. However, allowances for inflation (DA), housing allowance (HRA), and other benefits will be added to this amount, leading to a further increase.
The demand for a fourfold fitment factor was put forward by the Bharat Petroleum Mazdoor Sangh (BPMS). According to this proposal, the minimum basic rate should be 72,000 rupees. BPMS asserts that 1.58 of this figure is intended exclusively to compensate for the impact of the Consumer Price Index (DA), while the remainder is for increasing the overall income.
Experts suggest that such a significant wage increase is unlikely. It is assumed that the government might increase the total salary by 31%–40%, considering that this sum will include allowances for DA, HRA, and other payments, which will lower the overall percentage growth.