8th Pay Commission Salary Calculator: One Fitment Factor Can Lift Level 1 Pay To Rs 54,000 — Check Which One

The 8th Pay Commission is expected to revise the salaries of central government employees by applying a fitment factor to the existing basic pay. While the government has not yet announced the final fitment factor, different estimates show how salaries could change under various scenarios.

One of the biggest factors that will decide how much employees earn under the 8th Pay Commission is the fitment factor. This is a number used to calculate the new basic pay. The higher the fitment factor, the bigger the increase in salary.

For a Level 1 central government employee, whose current basic pay is Rs 18,000, the revised salary could differ depending on the fitment factor. 

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If the government adopts a 2.1 fitment factor, the basic pay could increase to Rs 37,800. With a 2.5 fitment factor, the revised basic pay could rise to Rs 45,000 and if a 3.0 fitment factor is approved, the basic pay could reach Rs 54,000.

For example, a Level 10 employee, who currently has a basic pay of Rs 56,100, could see it rise to around Rs 1.18 lakh if a 2.1 fitment factor is applied. If the government chooses a 2.5 fitment factor, the basic pay could increase to about Rs 1.4 lakh. Under a 3.0 fitment factor, the revised basic pay could go up to Rs 1.68 lakh.

Under the 7th Pay Commission, the government fixed it at 2.57. This increased the minimum basic salary of central government employees from Rs 7,000 under the 6th Pay Commission to Rs 18,000, with effect from January 2016.

Fitment Factor Demand

The National Council-Joint Consultative Machinery (NC-JCM), which represents central government employees, has demanded a fitment factor of 3.83. If the government accepts this demand, the minimum basic pay could rise from the current Rs 18,000 to around Rs 69,000. 

The fitment factor does more than increase the basic salary. It also affects several other payments and retirement benefits that are linked to the basic pay. These include House Rent Allowance (HRA), Transport Allowance (TA), pension, gratuity and other retirement benefits. If the basic pay goes up, these benefits are also revised accordingly.

ALSO READ: 8th Pay Commission: Fitment Factor Likely In 1.9-2.1 Range, Says Expert, Cites Fiscal Constraints

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