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  5. 8th Pay Commission: Employee union demands fitment factor of 3.68; here's the expected minimum wage

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8th Pay Commission: Employee union demands fitment factor of 3.68; here's the expected minimum wage

Upstox
By Upstox News Desk

2 min read | Updated on July 13, 2024, 12:19 IST

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SUMMARY

The fitment factor is multiplied with ₹7,000 to determine the minimum salary of central government employees. The 7th Pay Commission had used a fitment factor of 2.57, which increased the minimum basic to ₹18,000 (₹7,000 x 2.57).

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The fitment factor, which is the multiplication factor used to revise the minimum basic salary of central government staff, should be raised to 3.68, a top body of employees has demanded ahead of the expected formation of the 8th Pay Commission.

"Our demand is that the fitment factor should be 3.68," Shiv Gopal Mishra, Secretary, National Council (Staff Side) of the Joint Consultative Machinery (JCM), told Upstox.

The fitment factor is multiplied by ₹7,000 to determine the minimum salary of central government employees. The 7th Pay Commission had used a fitment factor of 2.57, which increased the minimum basic to around ₹18,000.

Also Read: 8th Pay Commission to OPS restoration: 7 demands raised by govt employee union ahead of Budget 2024

The expected minimum wage

If a fitment factor of 3.68 is recommended by the 8th Pay Commission, then the basic minimum wage would rise to nearly ₹26,000..

"Last time also we had demanded ₹26,000 as the minimum basic pay," pointed out Mishra, who was involved in the 7th Pay Commission negotiations on behalf of the central government employees and pensioners.

"Once the basic pay increases, then HRA (house rental allowance), DA (dearness allowance) and other allowances also increase," the union leader added.

Also Read: 8th Pay Commission announcement expected by September, says Shiv Gopal Mishra

Will 8th Pay Commission be announced in Budget 2024?

The Confederation of Central Government Employees and Workers wrote a letter to the Union Cabinet Secretary on July 6, listing seven demands. One of the demands was that the Centre should announce the formation of the 8th Pay Commission in the budget that is to be presented on July 23.

The last pay panel was formed by the Centre in February 2014, and its recommendations were implemented in effect from January 1, 2016. The next revision is due on January 1, 2026.

Mishra, who had also written to the Cabinet Secretary in June calling for the formation of 8th Pay Commission, said "it would be better" if the government announces its formation in the upcoming budget. "But we are expecting that by September, they must announce," he added.

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About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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