If you are also a central government employee and are eagerly waiting for the 8th Pay Commission, then there is great news for you. An estimate of a huge increase in salary has come out. Know what changes will happen in the fitment factor and DA when the 8th Pay Commission is implemented, and how much your salary can increase.
Role of Fitment Factor in 8th Pay Commission
The most important part of any pay commission is its fitment factor. It is a multiplier that is multiplied by your current basic salary to determine the new basic salary. The fitment factor in the 7th Pay Commission was 2.57 times. Although there has been no official announcement on the 8th Pay Commission yet, according to reports and past trends, it is estimated to be 1.92 times.
Salary will increase by this much from the 8th Pay Commission
At present, employees who are getting a monthly salary between ₹50,000 and ₹55,000 fall in Pay Level 5, and their basic salary is ₹29,200. Let’s see what changes can come in their salary after the implementation of the 8th Pay Commission.
Currently, under the 7th Pay Commission, the basic salary of these employees is ₹29,200. An estimated 50% DA, i.e., ₹14,600, is available on this. Along with this, by adding 27% HRA (₹7,884) and TA (₹2,700), their total monthly gross salary becomes around ₹54,384.
Now, after the implementation of the 8th Pay Commission, their basic salary will increase by 1.92 times to ₹ 56,064. With the new salary, HRA will also increase by 30% i.e., to ₹ 16,819. At the same time, TA can also be revised to ₹ 2,500. Adding all these, their total monthly gross salary can reach ₹ 75,383. This will be a direct increase of about ₹ 21,000 in the monthly salary, which can prove to be a big gift for the employees.
What will happen to DA
Many employees have a question in their mind about what happens to dearness allowance (DA) when the new pay commission is implemented. The answer is very simple: whenever the new pay commission is implemented, the existing DA is merged with the revised basic salary. This process is called ‘merging of DA’. As DA becomes a part of the new basic salary, it gets reset to zero. After this, a new DA cycle begins, which is linked to the new Consumer Price Index (CPI-IW).