8th Pay Commission Salary Calculations: How will salary be calculated under 8th Pay Commission? Check projected revised pays, HRA & other allowances if fitment factor is…
8th Pay Commission Salary Calculations: How will salary be calculated under 8th Pay Commission? Check projected revised pays, HRA & other allowances if fitment factor is...
Salary under 8th Pay Commission: The Central government is soon going to announce the 8th Pay Commission. Once the 8th CPC's recommendations are approved, the employees will start getting the revised salary.
The 7th Pay Commission categorised employees' salaries on the basis of the pay matrix, where there are 18 levels. Employees with different ranks and responsibilities come under these basic pay levels. In Levels 4-9, employees such as junior staff, assistants, middle management, and junior officers come. All central employees got a 2.57 fitment factor in the 7th Pay Commission.
What if the same fitment factor is applied to the 8th Pay Commission salary structure? What can be projected gross and total salaries, house rent allowance (HRA) and travel allowance (TA), and National Pension System (NPS) and Central Government Health Scheme (CGHS) contributions at a 2.57 fitment factor? We will take the examples of Level 4 (basic pay Rs 25,500), Level 5 (basic pay Rs 29,200), Level 6 (basic pay Rs 35,400), Level 7 (basic pay Rs 44,900), Level 8 (basic pay Rs 47,600), Level 9 (basic pay Rs 53,100) for our calculations.
In the 7th Pay Commission, the pay matrix forms the basic pay structure for central government employees. It has 18 levels, 4 pay bands and 15 grade pays. The levels categorise employees based on their ranks and responsibilities.
In Level 1-5, entry-level clerks, junior staff, clerks, and assistants come, while in levels 6-9, middle management and junior officers come. In Level 10 onwards, senior rank officers come.
Apart from the basic salary, employees get dearness allowance (DA), which is revised twice a year. Other allowances such as HRA, TA, and child education are also added to the salary.
Contributions to National Pension System (NPS) are mandatory for employees who joined from January 1, 2004, and onwards, and CGHS are deducted from the salary to form the total salary that the employee gets.
The salary is revised on the basis of the fitment factor. The basic salary is multiplied by it to establish the revised basic pay. Allowances are added to it to form the revised salary. For the 6th Pay Commission, the fitment factor was 1.92; for the 7th, it was 2.57.
It will be known once 8th Pay Commission recommendations are approved. But it may be anywhere in the range of 1.92-2.86.
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