8th Central Pay Commission update: In a significant development for central government employees the Union Cabinet chaired by Prime Minister Narendra Modi approved the Terms of Reference of the 8th Central Pay Commission. The clearance of the 8th Central Pay Commission TOR will take up the issue of increasing salaries of Central government employees and payments to pensioners. Here are all the details you need to know about what can be expected from the 8th Central Pay Commission. What will 8th Central Pay Commission do? The 8th Central Pay Commission will be a temporary body comprising of one Chairperson; one Member (part-time) and one Member-Secretary which will make its recommendations within 18 months of the date of its constitution. On a general note the central pay commissions are periodically constituted to go into various issues of emoluments structure retirement benefits and other service conditions of Central Government employees and to make recommendations on the changes required thereon a report by IANS said. What do experts say on 8th Pay Commission expectations? According to estimates from Kotak Institutional Equities and Ambit Capital the 8th Pay Commission is expected to recommend a fitment factor between 1.8 and 2.46. Though technical in nature this figure will directly determine how much more central government employees will earn under the revised pay scales a report by ABP Live said. If Kotak’s projection of a 1.8 fitment factor proves accurate the basic pay for Level 1 employees — such as peons and office attendants — could increase from Rs 18000 to Rs 32400 The Financial Express reported. While this represents an 80% rise on paper the actual hike will be smaller since the Dearness Allowance (DA) resets to zero when a new pay commission is implemented. With the current DA at 58% the effective salary increase could be closer to 13% after accounting for allowances like HRA. (With inputs from agencies)