The meeting of the eighth departmental council in Jaipur has concluded, and the next meeting is scheduled for September 7 and 8 in Chennai. During the meeting of representatives of workers and pensioners, many issues related to the eighth departmental council were discussed. Special attention was paid to the annual salary increase.
Employee representatives insisted on establishing a higher percentage increase. Currently, civil servants and pensioners receive an annual increase of 3 percent. However, considering current inflation, they consider this indexation insufficient and demand that the government set the annual increase percentage to no less than 7 percent.
The Federation of Workers of the New Pension System of India (AINPSEF) demanded an annual increase of 7 percent. If this requirement is met, it is possible to calculate the size of salaries and pensions for pensioners.
If we take the base salary of a level 8 employee of 47,600 rupees and apply a fitment factor of 2.15 within the framework of the eighth departmental council, the total base salary will increase to 102,340 rupees. After including allowances for region and housing costs, the total income will increase even more.
With a fixed annual increase of 7 percent, the salary will grow as follows: in the first year it will be 1,228,080 rupees, in the second — 1,314,046 rupees, in the third — 1,406,029 rupees, in the fourth — 1,504,451 rupees, and in the fifth — 1,609,762 rupees.
Further calculation shows that if the annual increase of 7 percent is maintained, the annual salary will reach 16,967,703 rupees by the tenth year. Thus, after introducing a 7 percent increase, an employee can receive an additional 29 lakh rupees solely from the salary increase after 10 years.