8th pay Commission: The wait for the 8th Pay Commission for central government officials and employees is gradually getting faster. Everyone wants to know how much their salary will increase, especially when it comes to important posts like Level-10 (Grade Pay-5400). An important formula called Fitment Factor works in how your current basic salary will change to a new, increased basic salary. Then many allowances like Dearness Allowance (DA), House Rent Allowance (HRA) and Travel Allowance (TA) are added to this new basic, which determines your total monthly salary.
How can this whole process work in the 8th Pay Commission and what effect can it have on the salary of level-10 officers. We will also give you a salary calculator, so that you can calculate your estimated new salary yourself.
When will the 8th Pay Commission come?
Every 10 years, the government forms a commission to increase the salary of its employees and to improve other facilities, which is called Pay Commission. The previous one, i.e. 7th Pay Commission, came on 1 January 2016. So according to that, now the 8th Pay Commission is expected to be implemented from 1 January 2026. Level-10 officers do very important work for the government, so there is a good expectation of a good increase in their salary.
How much will be the Fitment Factor?
The biggest question and the center of curiosity about the 8th Pay Commission is its Fitment Factor. This is the magical number that will decide how big the basic salary of central employees will increase. Let us remind you that the Fitment Factor in the 7th Pay Commission was 2.57.
What are the speculations right now?
At present, there has been no official announcement from the government regarding the formation of the 8th Pay Commission or the fitment factor. However, many speculations are being made based on the demands of employee organizations. If sources are to be believed, the fitment factor may be around 1.92 on the lines of the old pay commissions. The government does not want to keep the salary hike too high. At the same time, some estimates are talking about it going up to 2.08, 2.86 or even more than 3.68.
How will the basic salary change?
Whenever a new pay commission comes, it decides a ‘fitment factor’. This is a number by which your current (7th Pay Commission) basic salary is multiplied, and this gives your new basic salary of the new pay commission (i.e. 8th CPC).
For example, the fitment factor in the 7th Pay Commission was 2.57. This meant that if someone’s old basic salary was ₹10,000, the new basic salary became ₹10,000 * 2.57 = ₹25,700.
The fitment factor of the 8th Pay Commission has not been decided yet. Different news reports and unions are making their own estimates. Experts believe that it may be around 1.92.
8th cpc level 10 gp5400 salary calculator current basic pay 82400 da hra ta net salary
How will DA, HRA, TA be added?
Once your new basic salary is decided, a number of allowances are added to it, which increase your total earnings:
Dearness Allowance (DA)
This allowance is given to deal with rising inflation. It is usually made zero at the beginning of the new pay commission and is calculated afresh on the new basic salary (when the government announces it).
House Rent Allowance (HRA)
This is a certain percentage of your new basic salary depending on your city (X, Y, or Z class city). HRA is higher in bigger cities.
Travel Allowance (TA – Transport Allowance)
This is given for your travel expenses to and from work and this also depends on your pay level and city. Apart from these main allowances, there can be some other minor allowances as well, which depend on your posting and department.
8th cpc level 10 gp5400 salary calculator current basic pay 82400 da hra ta net salary
Understand Deductions Too
The total amount that is formed after adding all the allowances mentioned above to the new basic salary is called Gross Salary. But this entire amount does not come in your hands. There are some necessary deductions from it, such as.
1. National Pension System (NPS)
10% of your new basic salary and DA is deposited in NPS.
2. Income Tax
The tax applicable on your total annual income.
3. Professional Tax
This is also cut in some states.
The money that comes into your bank account after these deductions is called Net Salary or ‘In-hand Salary’. You will be able to see an estimated calculation of all these things in our salary calculator.