Business Desk, 8th Pay Commission: There is a strong discussion about salary increase among central employees and pensioners regarding the Eighth Pay Commission. Most of the attention is on Fitment Factor. However, the fitment factor 2.57 for the 8th Pay Commission has not yet been fixed by the government.
In such a situation, if the fitment factor of 2.57 is applied like the 7th Pay Commission, then it can be estimated what the basic salary of employees of different Pay Matrix levels can be.
What is fitment factor?
Fitment factor is a multiplier, through which the new basic salary is decided by multiplying the basic salary of the old pay commission. Its formula in simple language is- New Basic Salary = Existing Basic Salary × Fitment Factor. Here the fitment factor of 2.57 has been taken only as an estimate.
What can be the basic salary of a peon?
The minimum basic salary in Pay Matrix Level-1 under the 7th Pay Commission is Rs 18,000. If the fitment factor of 2.57 is applied in the 8th Pay Commission, then by multiplying Rs 18,000 by 2.57, the new basic salary will be Rs 46,260. That is, based on this estimate, the basic salary of a Level-1 employee may increase from Rs 18,000 to Rs 46,260.
What can be the basic salary of a teacher?
The starting basic salary in Pay Matrix Level-6 is Rs 35,400. According to 2.57 fitment factor, the amount when multiplied by 35,400 × 2.57 comes to Rs 90,978. That is, in this estimate, the starting basic salary of a Level-6 employee can be around Rs 91 thousand.
What will be the basic salary of Class-1 officer?
The starting basic salary in Pay Matrix Level-10 is Rs 56,100. If the fitment factor of 2.57 is applied, then the new basic salary of Rs 56,100 × 2.57 will be Rs 1,44,177. That is, according to this estimate, the starting basic salary of a Level-10 officer can be around Rs 1.44 lakh.
What will be the impact on Take-Home Salary?
How much the employee's take-home salary will increase after the 8th Pay Commission will not be decided by the basic salary alone. Along with changes in basic pay, amendments in DA, HRA, TA and other allowances will also affect the total salary.
Therefore, Rs 46,260, Rs 90,978 and Rs 1,44,177 should only be considered as possible basic salaries and cannot be considered as final in-hand salaries.
How much can pensioners benefit?
The minimum pension in the 7th Pay Commission was Rs 9,000. If the calculation is done on the basis of only 2.57 fitment factor, then the amount of 9,000 × 2.57 comes to Rs 23,130. However, what exactly will be the minimum pension in the 8th Pay Commission and by what formula it will be revised, it will be clear only after the final recommendations of the government and the Pay Commission.
What is not decided yet?
The most important thing is that 2.57 fitment factor will be implemented in the 8th Pay Commission, this has not been officially confirmed yet. Therefore the figures given above for peons, teachers, officers and pensioners are probable calculations. The actual salary and pension will be decided on the basis of fitment factor, pay matrix and final approval of the government.
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