North India Statesman
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Millions of central employees across the country are currently monitoring every update of the 8th Pay Commission. Everyone just wants to know how much its salary will increase when its implementation. From the lowest level employee to the biggest officer, everyone is engaged in calculating their salary.
In this episode, today we will talk about those officers of Level 8 (Grade Pay-4800) who play an important role in management and supervision. The question is, how much economic change will happen in the lives of these officers after the 8th Pay Commission? Will their net salary be able to cross the figure of 1 lakh? Let us try to understand this mathematics through the ‘8th Pay Commission Salary Calculator’.
What is fitment factor?
The soul of any pay commission resides in its fitment factor. This is a multiplier by which you can determine the new basic salary by multiplying the current original salary.
The Fitment Factor in the Seventh Pay Commission was 2.57, causing the minimum original salary to directly from Rs 7,000 to Rs 18,000.
The 8th Pay Commission (Estimated) has not yet been announced, but according to media reports, the fitment factor from 1.92 to 2.86 is being considered. If we look at the old traditions, the 1.92 fitment factor seems to be a real possibility. We will do our complete calculation based on this 1.92 fitment factor.
How much can the salary be in the 8th Pay Commission?
8th Pay Commission: Will dearness allowance be zero?
This question is in the mind of every employee. The answer is almost yes. Usually, the dearness allowance becomes zero as soon as the new pay commission is implemented.
This is because the whole Da that has been received till now is contained in your new basic salary. The current DA (which has increased by 50%) will become part of the new basic salary. Then the calculation of DA will start from zero again on the basis of the new Consumer Price Index (CPI-IW). Which will continue to grow every 6 months.
8th CPC: Complete account of the salary of Level-8.
Also, know what the salary of the Level-8 officer in the Eighth Pay Commission looks.
basic information
– Pay level: 8
– Grade Pay: 4800
– Original Pay Commission (Current) in 7th Pay Commission: ₹ 47,600
– City category (estimated) X-like Delhi, Mumbai, Kolkata
8th CPC: Level-8 estimated salary calculation
Parameter (component) amount details
Current basic salary ₹ 47,600 This is your current basic salary (as per 7th Pay Commission)
The estimated fitment factor is 1.92, so that your new basic salary will be determined by multiplying.
New original salary ₹ 91,392 (₹ 47,600 x 1.92)
Dearness allowance (DA) ₹ 0 in the new Pay Commission, DA has been merged into the original salary.
House Rent Allowance (HRA) ₹ 27,418 This is 30% of the new basic salary (for X-category city)
Travel allowance (TA) is available high TPTA at level 8 for ₹ 3,600 ex-education city.
Total GDP ₹ 1,22,410 (New Original Salary + HRA + Ta)
Deduction
NPS contribution (₹ 9,139) 10 percent of new basic salary
CGHS contribution (₹ 650) Detected Health Scheme deduction for this pay level
Income tax (estimated) (₹ 7,721) projected monthly tax under new tax system
Total cuts (₹ 17,510)
Pure salary ₹ 1,04,900 GDP- Total deductions
Now let’s understand the calculation (according to the table above)
– If the existing basic salary at Level 8 is multiplied by the estimated fitment factor 1.92, the direct salary will be ₹ 91,392. This is a huge jump.
– Adding 30% HRA (for X-City) to this new basic salary will increase by ₹ 27,418.
– ₹ 3,600 will be added as travel allowance.
– By adding all this, your gross salary is estimated to be ₹ 1,22,410 per month.
– But before reaching your hand, you will be deducted from it like NPS (₹ 9,139), CGHS (₹ 650) and Income Tax (estimated ₹ 7,721).
After all the deductions, the net salary of the level 8 officer can be around ₹ 1,04,900 per month.
There is every possibility that after the 8th Pay Commission, the net salary of Level 8 officers will easily cross the psychological figure of one lakh.
The Eighth Pay Commission will bring a major financial reform for employees working in important posts like Central Government employees, especially Level 8. Even on a minor fitment factor of 1.92, pure salary of more than Rs 1 lakh shows a significant increase in employees’ ability to spend. This will improve their standard of living and increase demand in the economy. However, the final picture will be clear only after the government accepted the official recommendations of the Eighth Pay Commission.
