Business Desk – 8th Pay Commission Update: The biggest question among lakhs of central employees and pensioners across the country regarding the Eighth Pay Commission is whether the minimum basic salary will directly increase from Rs 18,000 to Rs 69,000? This claim is becoming increasingly viral on social media.
However, market expert and financial analyst Sanjay Kathuria says that it is important to understand the mathematics behind this claim. He said that the figure of Rs 69,000 is a probable calculation, but it would not be right to consider it as the final decision.
Why is basic salary most important?
Every 10 years, the central government constitutes a new pay commission keeping in mind inflation, cost of living and economic conditions. But the salary of employees is not decided only by the salary in hand. Its foundation is on basic. Apart from basic pay, the gross salary of any employee includes dearness allowance (DA), house rent allowance (HRA) and other allowances. After this, after NPS, income tax and other deductions, the net salary comes into the employee’s account.
When the new Pay Commission is implemented, first of all the existing Dearness Allowance (DA) is reduced to zero and merged into the new basic salary. This is the reason why the new basic pay appears much higher than the old basic salary.
What is the fitment factor, which will decide the new salary?
In the Eighth Pay Commission, the biggest basis for the new basic salary of the employees will be the fitment factor. This is the same multiplier, by which the new basic salary is determined by multiplying the existing basic salary.
At present the minimum basic salary of central employees is Rs 18,000. Employee organizations have demanded the government to implement 3.83 fitment factor. If the government accepts this demand, then the mathematics will be something like this.
18,000 × 3.83 = Rs 68,940
That means the new minimum basic salary can be around Rs 69,000. These days this data is going viral on social media and many platforms.
Can the government really give Rs 69,000 basic salary?
According to market expert Sanjay Kathuria, salary is not decided only on the basis of demands of employee organizations. The government has to consider many economic aspects before increasing salaries. These include many factors like fiscal deficit, defense expenditure, crude oil prices, expenditure on social welfare schemes, financial position of the Center and the states. For this reason, many policy experts believe that the government can fix the fitment factor between 2.0 to 2.6.
So how much can the new basic salary be?
If the fitment factor remains between 2.0 to 2.6, then the minimum basic salary can be around Rs 36,000 to Rs 47,000. However, depending on the final recommendations and salary structure, this figure can reach between Rs 40,000 to Rs 52,000. That is, at present the claim being made regarding the basic salary of Rs 69,000 is only a possible calculation and not an official decision of the government.
When will I get the increased salary?
There is talk of implementing the recommendations of the Eighth Pay Commission from January 2026, but this does not mean that the increased salary will be credited to the employees’ accounts at the same time. If we look at the experience of previous pay commissions, it takes a lot of time between the implementation of the recommendations and the actual payment. In such a situation, there is a possibility that the employees may get the increased salary and arrears by the end of 2027 or the beginning of 2028.
What is the truth on the news of Rs 69,000?
At present, no official decision has been taken to increase the minimum basic salary directly from Rs 18,000 to Rs 69,000. This figure is possible only if the government approves 3.83 fitment factor as per the demand of the employees.
However, considering the current economic conditions, many experts believe that the government can take a decision on a fitment factor lower than this. In such a situation, the possibility of the new minimum basic salary being less than Rs 69,000 is considered high.
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