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8th Pay Commission between Central Employees and Pensioners (8th Pay Commission – 8th CPC) The movement regarding the recommendations has intensified. With the completion of the tenure of the 7th Pay Commission, lakhs of government employees across the country are eagerly waiting for their salary revision. especially the matrix Level-5 (Pay Band-1, Grade Pay 2800) The 8th Pay Commission is going to bring a big financial relief for the employees covered under IPC—like senior clerks, auditors, assistants and accountants. From a reporter’s point of view, if the government increases the fitment factor in the new pay commission, then there will be a huge jump in the take-home salary of level-5 employees. Let us understand how the mathematics of Level-5 basic pay and gross salary will change after the implementation of the new Pay Commission.
What is the structure of Level-5 in the current 7th Pay Commission?
The starting pay structure of Matrix Level-5 employees under the 7th Pay Commission is as follows:
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Starting Basic Pay: ₹29,200 per month
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Dearness Allowance (DA): 50% or more (as amended from time to time)
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other allowances: House Rent Allowance (HRA – as per X, Y, Z cities), Transport Allowance (TA) and Medical Allowance.
Mathematics of 2.57 and 2.86 fitment factor in 8th Pay Commission
In deciding your new basic pay in Pay Commission ‘Fitment Factor’ Plays the most important role. If the government implements the minimum or higher fitment factor in the 8th Pay Commission, the revised basic pay of Level-5 will increase as follows:
1. If 2.57 fitment factor is applicable (same as 7th CPC)
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Current Basic Pay: ₹29,200
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New Basic Pay (29,200 × 2.57): About ₹75,044 per month
2. If 2.86 fitment factor is applied (demand of employee unions)
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Current Basic Pay: ₹29,200
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New Basic Pay (29,200 × 2.86): About ₹83,512 per month
(Note: DA starts from zero (0%) in the initial phase as soon as the new pay commission is implemented and then gradually increases every 6 months.)
How much will the total gross salary increase (Gross Salary Calculation)?
When an employee’s basic pay increases from ₹29,200 to ₹75,000 or ₹83,000, the basic calculation of their HRA (House Rent Allowance) and TA (Transport Allowance) will also be revised proportionately:
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In X-Class Cities: Where HRA rates are highest, the starting gross salary of a Level 5 employee is: ₹85,000 to ₹95,000 per month Can reach between.
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After NPS/PF deduction: Even after NPS/UPS and other statutory deductions, there will be a direct jump of about 40% to 50% in the net in-hand salary as compared to the 7th Pay Commission.
When can we get good news?
The employee unions demand that the process of formation of the 8th Pay Commission should be completed as soon as possible so that the central employees can get a proper salary increase in this era of inflation. If the government constitutes a commission and implements its recommendations, the biggest benefit will be to the lower and middle level (Level 1 to Level 5) employees, which will lead to a comprehensive improvement in their lifestyle and saving capacity.