Pension Increase: The pension will also be revised under the 8th Pay Commission with the salary of employees. As per the latest reports, there will be a figure of 90 percent increase in pension, thereby benefiting not only regular employees but also pensioners. Now that fitment factor discussions are rising again, employees have started doing their calculations about the pension. Let’s know more about this update in the news.
Increase In Fitment Factor
Every employee’s salary and pension increase only with the help of the fitment factor, and this time there are talks of having the fitment factor at 1.90 and if that will come into place then the pension of the employees will have a big jump. It is said that high fitment factor means more pay to the employees. Under the 7th Pay Commission, there was a fitment factor of 2.57, which gave considerable increase and increment under the salary and pension of government employees. If this 1.90 is kept for the 8th Pay Commission, then pensioners will get a very good benefit.
Thus Much Increase In Fitment Factor
Fitment factor plays the biggest role when it comes to salary revision. Up till now, the government has not spoken anything on the official front about fitment factor or 8th Pay Commission members. Only in January was the approval announced for the formation. At the same time, an employee organization is demanding a fitment factor of at least 2.80 because of inflation. According to the employees, inflation in the last two-three years is too high, and this is true for pensions as well as salaries. If the government looks into the matters of employees and supports them, fitment factors can be pegged at 1.90 and this will uplift more than a crore central employees and pensioners.
Calculation Regarding Pension-
- The pension of government employees (pension hike) is dependent on their basic salary and fitment factor. – 50% of the basic salary is given to the employee as a pension.
- As per the Seventh Pay Commission, the minimum pension of the employee has been established at Rs.9,000, while the maximum limit will be Rs.1,25,000, revised in 8th Pay Commission. The maximum pension is expected to be more than 2 lacs.
- If fitment factor 1.90 is applied, then the minimum pension can be increased from Rs.9,000 to Rs.17,000 (minimum pension in 8th CPC). Likewise, the maximum pension would be from Rs.1,25,000 to Rs.2,37,500.
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