What is Pay Commission?

• Every 10 years, the government constitutes the Pay Commission to review and recommend changes to the salary structure of its employees. 
• Additionally, the commission reviews bonuses, perks, allowances, and other benefits provided to government employees.
• There have been seven Pay Commissions since 1946. 
• Currently, recommendations of the 7th Pay Commission, formed in 2014, are being followed. Its recommendations were implemented on January 1, 2016.

How many beneficiaries of 8th Pay Commission?

• Nearly 50 lakh employees, including defence personnel, are expected to benefit from its recommendations. 
• Additionally, 65 lakh pensioners – including defence retirees – who receive their pensions from the Centre, are also likely to benefit from the recommendations.

Why in News?

• The Union Cabinet has approved the 8th Pay Commission to revise salaries of the central government employees.
• The central government has not revealed the percentage by which salaries of its staff will be raised. However, experts have estimated that the “fitment factor” could see a rise from the existing 2.57 to 2.86.
  • Therefore, with a fitment factor of 2.86, the minimum basic salary of the government employees could nearly triple, from ₹18,000 to ₹51,480 per month.

What is ‘fitment factor’?

• It is a key multiplier used to calculate salaries and pensions for the government staff. 
• It is determined through factors such as inflation, employees’ requirements, government’s affordability, etc.

https://www.hindustantimes.com/india-news/8th-pay-commission-approved-what-salary-hike-can-central-government-employees-expect-101737178979240.html