8th Pay-Commission,In order to assess wage and pension increases for central government employees, the highly anticipated 8th Pay Commission is predicted to follow the same methodology as its predecessor, the 7th Pay Commission, by applying the Aykroyd formula. This strategy guarantees that wages reflect the cost of living and the state of the economy.
8th Pay-Commission Understanding the Aykroyd Formula
To 8th pay-Commission determine a minimum cost of living, the Aykroyd formula—named for the famous nutritionist Dr. Wallace Aykroyd—was created. It highlights the dietary demands of the typical worker and takes into account necessities like clothing, food, and housing. The 15th Indian Labour Conference (ILC) endorsed the formula in 1957, thereby recognising it as the basis for determining minimum pay for workers, including their spouse and two children.
7th Pay Commission and Aykroyd Formula
In order to ensure that wages and pensions matched the current cost of living and nutritional standards, the 7th Pay Commission was established in 2016 and used the Aykroyd formula to revise the salaries of central government employees. This resulted in an increase in the minimum basic pay from Rs 7,000 to Rs 18,000, with a fitment factor of 2.57.
What to Expect from the 8th Pay Commission?
In order to guarantee equitable and competitive government compensation, the forthcoming 8th Pay Commission is anticipated to employ a similar methodology, fusing the Aykroyd formula with current market data. According to reports, a fitting factor of 1.92 to 2.86 may be taken into consideration by the government. The minimum basic pay might increase from the present Rs 18,000 to Rs 51,480 if the highest end of this range (2.86), is implemented. Similarly, pensions may rise from Rs 9,000 to Rs 25,740.
Role of Fitment Factor
When it comes to pay and pension adjustments, the fitting factor is quite important. The updated salary is calculated by multiplying the current basic pay. Although the precise proportion of the pay increase under the 8th Pay Commission has not yet been decided, information from earlier pay commissions offers a broad idea of possible compensation adjustments.
Upcoming Announcements and Implementation
It is anticipated that the Centre will shortly reveal the 8th Pay Commission’s membership, which would consist of two members and a chairperson. Following the panel’s formation, stakeholder discussions will begin to finalise recommendations for updated pensions and salary.
The implementation of the Aykroyd formula is anticipated to provide equitable remuneration in line with contemporary living standards, helping millions of workers and retirees nationwide as government personnel await additional advancements.
