New Delhi. The long wait for central employees and pensioners is about to end. After the completion of the 7th Pay Commission, the 8th Pay Commission is going to be implemented, and with it there will be a big jump in the salary of central employees.
This change holds special significance especially for those employees whose current basic salary is Rs 18,000. After the implementation of the 8th Pay Commission, their gross salary can reach above Rs 45,000. This includes Fitment, House Rent Allowance (HRA) and Transport Allowance (TA).
What is fitment factor and why is it important?
Fitment factor is a coefficient, which is used to calculate the new basic salary by multiplying the old basic salary. The higher the fitment factor, the higher the salary increase. In deciding this, many aspects like inflation, daily expenses, government budget and private sector salaries are taken into consideration.
Last time in the 7th Pay Commission the fitment factor was 2.57, whereas in the 6th Pay Commission it was 1.92. This time the estimated factor may be 1.92. The formula to calculate the new basic salary is old basic salary × fitment factor = new basic salary, example: 18,000 × 1.92 = Rs 34,560, in this way the basic will increase by Rs 16,560.
The entire salary structure will change
As soon as the 8th Pay Commission is implemented, not only the basic salary will increase, but the entire structure of gross salary and allowances will change. With the increase in Basic, Special Rate Allowance (SRA) and Transport Allowance will also increase on the same basis. Dearness Allowance (DA) will also be applicable on the new basic, which will further increase the total salary.
What could be the new gross salary?
New basic salary: Rs 34,560
Gross salary including HRA and TA: Can exceed Rs 45,000.
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