Unions push for bigger annual increment in 8th Pay Commission

Consultations and Demands

Staff organisations representing Indian central and state government employees have asked the 8th Pay Commission to raise the annual increment paid to workers, according to AajTak. The commission is a periodic government body that reviews and revises the pay of public sector staff and pensioners.

AajTak reports that the commission's team has been holding discussions with employees, pensioners and their organisations, with consultations held in Delhi as well as in Ladakh, Uttar Pradesh and West Bengal. Memoranda setting out demands have emerged from that process.

The main asks are changes to the salary structure, a higher fitment factor and a higher annual increment rate. Under the 7th Pay Commission, central employees currently receive a 3% annual increment.

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Increment Versus Fitment Factor

The employee bodies NC-JCM, AIDEF and FNPO have proposed lifting the annual increment to 6%, AajTak reports. AINPSEF has asked for 7% and IRTSA for 5%, putting the range of demands between 5% and 7%.

AajTak sets out a hypothetical case of a Level-10 central employee on a current basic pay of Rs 56,100. On that basis, a sustained 7% annual increment would take basic pay to roughly Rs 4.27 lakh after 30 years, while a fitment factor of 2.57 times would leave it at around Rs 3.50 lakh over the same period.

The fitment factor is the multiplier used to adjust existing basic pay into a new salary structure, so its effect shows up immediately. The increment compounds instead, because each year's rise applies to the already increased basic pay.

Arrears and Pension Claims

More than one crore central government employees and pensioners are waiting for the 8th Pay Commission to take effect, ABP News reports. The commission's report has not been submitted yet, and further time will be needed after that before it is implemented.

ABP News cites an estimate that, assuming a fitment factor of 2.57 and a possible 20 month delay in implementation, central employees at Levels 4 to 7 could receive arrears of up to Rs 14.10 lakh. Its worked example takes a basic salary of Rs 44,900 rising to Rs 1,15,393, a monthly gap of Rs 70,493, multiplied over 20 months.

Arrears are calculated only on the difference in revised basic pay, ABP News says. Allowances such as house rent allowance, travel allowance and dearness allowance are not revised for past months, so no arrears are paid on them.

Separately, Navbharat Times reports that NC-JCM has rejected rumours that pensions for retired employees would be discontinued under the 8th Pay Commission. The detail of that denial is not available in the material reviewed here.