The 8th Pay Commission is expected to bring a significant salary and pension hike for over 1 crore government employees and pensioners. The Acroyd Formula, which was used in the 7th Pay Commission, is likely to be applied again to determine wage revisions.

What is the Acroyd Formula?

Developed by Dr. Wallace Acroyd, this formula calculates the minimum cost of living based on essential needs like food, clothing, and housing. It was officially adopted in 1957 by the 15th Indian Labour Conference (ILC) to establish a minimum wage for an employee, their spouse, and two children.

7th Pay Commission and Salary Hike

• The 7th Pay Commission (implemented in 2016) used a fitment factor of 2.57, increasing the minimum salary from ₹7,000 to ₹18,000.
• This formula also led to a rise in pension amounts for retired employees.

Expected Salary Hike in the 8th Pay Commission

• Reports suggest the fitment factor could range between 1.92 and 2.86.
• If 2.86 is applied, the minimum basic salary may increase to ₹51,480 (from the current ₹18,000).
• Similarly, pensions could rise from ₹9,000 to ₹25,740.

What’s Next?

The central government is expected to formally announce the structure of the 8th Pay Commission soon, which will include a chairman and two members. Once finalized, the percentage of salary hike and final fitment factor will be determined.