The government has recently approved the 8th Pay Commission. More than 1 crore central employees and pensioners will benefit from the implementation of this commission. The implementation of this commission is likely to increase a significant increase in salary and pension. Now the question is, how much will the monthly salary of employees be increased? A formula has surfaced about this, which can be guessed how much the salary of employees from 1 to 10 can increase.
What is an acroid formula?
Acroid formula is adopted for government pay determination. It was prepared by Dr. Wallace Acroid. The main objective of this formula is to fix salary to meet the minimum needs of the employee and his family. In this calculation, basic requirements like food, clothes and houses are taken into consideration. The formula was recognized in the 15th Indian Labor Conference (ILC) in 1957 and was adopted to fix the minimum wage for an employee, his wife and two children.
How this formula is used
In the 7th Pay Commission, the minimum basic salary was increased from Rs 7,000 to Rs 18,000 on the basis of the same formula. Also, 2.57 times increased using the fitment factor. This Fitment Factor came into force in 2016, leading to a significant increase in salaries of central employees.
How much will the salary increase?
It is believed that the Acroid Formula will also be followed in the 8th Pay Commission, so that salary and pension can be balanced according to inflation. According to media reports, the government is considering the fitment factor between 1.92 and 2.86.
If the fitment factor of 2.86 is applied, the minimum wage can increase from Rs 18,000 to Rs 51,480. At the same time, pension can also increase from Rs 9,000 to Rs 25,740.
What is fitment factor?
The Fitment Factor is the calculation method that sets an increase in salary and pension. *The new pay scale is calculated by multiplying it by the current minimum wage or pension amount. However, the government has not yet announced a detailed structure of the 8th Pay Commission. It is expected that the commission will be formed soon, with one chairman and two members.