There is an atmosphere of enthusiasm among central employees and pensioners ever since the announcement of the formation of the 8th Pay Commission by the Central Government. The biggest discussion is about the new salary of ‘Pay Level-1’ i.e. 1800 grade-pay employees. Everyone wants to know how much money will come into their account after the new salary structure. Although the government has not yet officially opened its cards regarding the ‘fitment factor’, the speculations being made are enough to bring a smile on the faces of the employees.

What is the salary now and how will it increase?

At present, according to the rules of the 7th Pay Commission, the minimum basic salary of Pay Level-1 employees is Rs 18,000 per month. Now after the implementation of the 8th Pay Commission, this basic salary will be decided on the basis of the new ‘fitment factor’. At present, the entire mathematics depends on which fitment factor is approved by the government. If we look at different possibilities, a huge jump in salaries is considered certain.

Mathematics of Different Fitment Factors (Approximate Basic Salary)

According to experts’ estimates, the new minimum basic salary can start from Rs 34,200 and go up to Rs 51,480. You can understand it like this:

• Fitment Factor of 1.90: new basic salary approx ₹34,200 Might be possible.
• Fitment Factor of 2.10: new basic salary ₹37,800 Can reach.
• Fitment Factor of 2.28: Basic salary in this ₹41,040 Might be possible.
• Fitment Factor of 2.46: this figure ₹44,280 Can go up to.
• Fitment Factor of 2.57: Basic salary based on this ₹46,260 Might be possible.
• Fitment Factor of 2.86: This is the best option, in which basic salary ₹51,480 Can reach.

Not only basic, there will be a huge increase in allowances too.

The impact of the 8th Pay Commission will not be limited to basic salary only. As the basic salary increases, your other allowances will also automatically increase. The most important of these is ‘House Rent Allowance’ (HRA), which is calculated on the basis of basic salary. That is, due to the increase in the new basic, the HRA you get according to the category of the city (X, Y or Z) will also be much higher than before.

Apart from this, rules regarding Dearness Allowance (DA) will also change. DA can be reset to 0 percent when the new pay commission is implemented and then it will be increased from time to time according to rising inflation. Also, revision in traveling allowance (TA) and other facilities is also expected. When all these allowances are added to the basic, there will be a historic increase in the ‘gross salary’ of the employees. It is not yet clear from which date the government will implement it, but the wait for the increased salary of the employees is now about to end.