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Govt Salaries Set to Soar: 8th Pay Commission Sparks Pay Doubling
27 Jun
Summary
- Level 4 employees may see basic pay rise to Rs 51,000.
- HRA could reach Rs 73,860 monthly for high-level employees.
- 55 lakh central government employees await revisions from the commission.
The 8th Pay Commission is currently undergoing consultations regarding salary and pension revisions for approximately 55 lakh central government employees and 69 lakh pensioners.
Initial calculations suggest a potential doubling of basic pay for Level 4 employees to Rs 51,000, with House Rent Allowance (HRA) varying by city category. If a 2.0 fitment factor is adopted and existing HRA rates remain, higher-level employees could receive up to Rs 73,860 monthly.
For instance, a Level 13 employee might see their basic pay increase to Rs 2,46,200, potentially resulting in an HRA of Rs 73,860 in X-category cities. Employee unions have proposed fitment factors between 2 and 5, while the government must consider fiscal implications. Final decisions will depend on the Commission's recommendations and government approval.
"Even a slight change in the multiplier (fitment factor) can significantly affect salaries at every pay level," stated Adhil Shetty, CEO of BankBazaar. The impact extends to benefits linked to basic pay, such as HRA.
