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Discussions about the 8th Pay Commission for Central Government employees and pensioners are continuously increasing. With the completion of the 10-year period of the 7th Pay Commission, murmurs of pay matrix revision have started. There is a possibility of huge increase in the salary of Assistant Section Officers (ASO – in Ministries), Inspectors of various departments (GST/Central Excise/Income Tax/CBI) and Junior Engineers (JE – CPWD/MES/Railways), which are the most popular and important posts among the central employees. It is very important to understand what level the basic pay and gross salary of these posts will reach after the possible fitment factor is implemented in the new pay commission.
What is the formula for determining fitment factor and basic pay?
The main basis of salary revision in the Pay Commission is ‘Fitment Factor’. A fitment factor of 2.57 was implemented in the 7th Pay Commission. The demand of employee organizations regarding the 8th Pay Commission is up to 2.86, while finance experts believe that a balanced fitment factor can be fixed between 2.28 to 2.57.
The mathematics to determine the new basic pay is quite straightforward:
Revised Basic Pay = Existing Basic Pay × Fitment Factor
The gross in-hand salary is then determined by adding House Rent Allowance (HRA), Traveling Allowance (TA) and Dearness Allowance (DA – which is initially reset from 0% and increases on the new basic).
Possible change in salary of Junior Engineer (JE – Level 6)
Junior Engineers posted in departments like Railways (RRB), CPWD and MES have been placed in ‘Pay Level-6’ (Graded Pay ₹4200) under the 7th Pay Commission.
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Current 7th CPC Basic Pay: ₹35,400 per month
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New Basic Pay at 2.28 Fitment Factor: Approximately ₹80,712 per month
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New Basic Pay at 2.57 Fitment Factor: Approximately ₹90,978 per month
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Estimated In-Hand Gross Salary: Level-6 employees currently earn around ₹60,000-₹65,000 gross including HRA and TA in X-City (metro city), which may increase to ₹1,05,000 to ₹1,18,000 per month after the implementation of the 8th Pay Commission.
Salary Calculation of Assistant Section Officers (ASO) and Inspectors (Level 7)
Inspectors working on posts like Central Secretariat (CSS), Ministry of External Affairs (MEA), Assistant Section Officer (ASO) posted in Ministry of Railways and Income Tax Department (CBDT), GST (CBIC) and Preventive Officer/Examiner come under ‘Pay Level-7’ (4600 Grade Pay).
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Current 7th CPC Basic Pay: ₹44,900 per month
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New Basic Pay at 2.28 Fitment Factor: Approximately ₹1,02,372 per month
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New Basic Pay at 2.57 Fitment Factor: Approximately ₹1,15,393 per month
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At 2.86 fitment factor (union demand): Approximately ₹1,28,414 per month
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Estimated In-Hand Gross Salary: The gross monthly salary of Level-7 officers posted in ‘X’ category metros like Delhi, Mumbai or Kolkata currently hovers around ₹78,000 to ₹85,000 including DA and HRA. After the pay revision of the 8th Pay Commission, this salary can directly cross ₹ 1,30,000 to ₹ 1,48,000 per month.
What will be the impact on other allowances?
With pay revision, not only the basic pay will increase but the structure of other related allowances will also get upgraded:
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House Rent Allowance (HRA): Depending on the category of cities (X, Y, Z), the HRA percentage will be re-calibrated as per the new basic pay.
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Travel Allowance (TA): TA rates will also be revised higher to compensate for the increased cost of fuel and transportation.
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Gratuity and Pension Fund: The increase in basic pay will have a direct impact on provident fund (NPS/UPS) contribution and retirement gratuity limits.
When can the new recommendations be implemented?
It usually takes 18 to 24 months to set up a pay commission, gather feedback from various stakeholders and draft recommendations. It is expected that after the final report of the Commission and the approval of the Cabinet, the employees can get the benefit of increased pay scale along with arrears.