After announcement of 8th pay commission. the formula for employees salary increase is in talk everywhere. In this article we will understand the impact of 8th pay commission on employees salary increase and by how much employees salary increase after this commission submit its repot in next year.
There are two formula which could be used to calculate how much employees salary increase. Earlier 7th pay commission has used Aykroyd Formula, this has been used for calculation of employees salary.
Aykroyd Formula : expected employees salary increase
The Aykroyd formula was developed by Dr. Wallace Aykroyd. This is the way to calculate minimum cost of living on certain factors. These were based on an average worker’s nutritional, clothing, and housing needs. Aykroyd formula (used for employees salary increase) was officially adopted by the 15th Indian Labor Conference in 1957 to set a minimum wage for a worker, their spouse, and two children.
According to a report the 7th Pay Commission used Aykroyd Formula to increase the minimum basic salary from Rs 7,000 to Rs 18,000. Also introduce the fitment factor of 2.56, which provided the simple way for calculating that how much employees salary increase and helped in revising the pay matrix for government employees and pensioners. From the year 2016 this formula is in used by the 7th pay commission.
Expected employees salary increase : the Fitment Factor
As from various reports and experts analysis it would be around 1.92 to 2.87. If this may set up to 2.86 then it would be maximum till date. We can analyze while taking example of various pay level in central government services and the estimated employees salary increase could be seen in near future.
- Level 1, it includes peons, attendants and support staff. Their current basic salary is Rs 18,000. It can increase to Rs 51,480 with 2.86 fitment factor. This means that the salary will increase by Rs 33,480.
- Level 2 includes lower division clerks. Their basic salary is currently Rs 19,900. It can increase to Rs 56,914 when the 8th Pay Commission is implemented. This means that these employees can get a hike of Rs 37,014.
- Level 4 includes grade D stenographers and junior clerks. Their basic salary is currently Rs 25,500. It may increase to Rs 72,930 after the 8th Pay Commission. This means a hike of Rs 47,430.
- Level 5 includes senior clerks and high-level technical staff. Their basic salary is currently Rs 29,200. It is expected to increase to Rs 83,512. This will be an increase of Rs 54,312.
- Level 6 includes inspectors and sub-inspectors. Their basic salary is Rs 35,400, which may become Rs 1,01,244 after revision. This will be an increase of Rs 65,844.
- Level 7 includes superintendents, section officers and assistant engineers. Their basic salary is Rs 44,900, which can be increased to Rs 1,28,414. This will be an increase of Rs 83,514.
- Level 8 includes section officers and assistant audit officers. Their basic salary is Rs 47,600 per month. This can increase to Rs 1,36,136 after the 8th Pay Commission. This means that there will be an increase of Rs 88,536.
- Level 9 includes deputy superintendents and account officers. Their basic salary is currently Rs 53,100. This can be increased by Rs 98,766. Then they will get Rs 1,51,866 every month.
- Level 10 includes entry level officers in civil services, such as Group A officers. He currently receives a basic salary of Rs 56,100 per month. With a fitment factor of 2.86, his basic salary can go up to Rs 1,60,446, an increase of Rs 1,04,346.
So, all these are based on estimation and speculation. We have to wait for the official repot to come then we can say it with more factually and accurately that how much employees salary increase could be seen in coming years.
Way forward: employees salary increase
The government is doing for the citizen as it has announced for formation of pay commission one year in advance. So the commission has got enough time to analyze the current situation of living of standard of employees and with they will estimate the expected employees salary increase in coming financial year.
I hope you got the answers. You can also read article on 8th pay commission by visiting the article highlighted.
Your suggestions are always acceptable feel free to comment in the comment box. We could further analyze the things in more detail.
