8th Pay Commission: Will the salary become ₹ 1 lakh as soon as the fitment factor changes? Complete and accurate calculations from level 5 to 8

The 8th Pay Commission remains the biggest and most talked about topic for crores of central employees and pensioners across the country. As the work of the Commission is progressing, curiosity and expectations regarding salary hike and fitment factor are at their peak in the minds of the employees. Employees are most curious to know how much their salary will jump after the implementation of the new pay commission and what will be their basic salary according to different pay levels. Let us understand the complete mathematics and calculation of salary of employees from level 5 to level 8 in simple language.

What is fitment factor and why is it important?

Fitment factor plays the most important and decisive role in the pay structure of central employees. This is a type of multiplier by which the new revised salary is arrived at by multiplying the old basic salary. For information, let us tell you that during the 7th Pay Commission, the fitment factor was fixed at 2.57. This time, employee organizations are demanding to increase the fitment factor to 3.83 or 4.0. However, financial experts believe that implementing such a high fitment factor may be a bit difficult in practice, but it is likely that the Commission may choose a scale between 2.00 to 2.57.

Current basic salary from level 5 to 8

Before making calculations based on different pay levels, it is important to know what the basic pay is at present at these levels:

• Level 5: ₹29,200

• Level 6: ₹35,400

• Level 7: ₹44,900

• Level 8: ₹47,600

Salary calculation for level 5 to 8 on different fitment factors

If the fitment factor is fixed at 2.00, 2.10, 2.25 or 2.57, the new basic salary of employees at different levels may increase as per the figures given below:

1. For Level 5 employees (Current Basic: ₹29,200)

• At 2.00× fitment factor: ₹58,400

• At 2.10× fitment factor: ₹61,320

• At 2.25× fitment factor: ₹65,700

• At 2.57× fitment factor: ₹75,044

2. For Level 6 employees (Current Basic: ₹35,400)

• At 2.00× fitment factor: ₹70,800

• At 2.10× fitment factor: ₹74,340

• At 2.25× fitment factor: ₹79,650

• At 2.57× fitment factor: ₹90,978

3. For Level 7 employees (Current Basic: ₹44,900)

• At 2.00× fitment factor: ₹89,800

• At 2.10× fitment factor: ₹94,290

• At 2.25× fitment factor: ₹1,01,025 (salary above ₹1 lakh)

• At 2.57× fitment factor: ₹1,15,393

4. For Level 8 employees (Current Basic: ₹47,600)

• At 2.00× fitment factor: ₹95,200

• At 2.10× fitment factor: ₹99,960

• At 2.25× fitment factor: ₹1,07,100 (salary above ₹1 lakh)

• At 2.57× fitment factor: ₹1,22,332

Pay Commission process and further deadlines

This commission constituted for central employees has started the second phase of its meetings. The Pay Commission is continuously meeting various employee organizations and stakeholders in different parts of the country including Delhi. According to experts, the Commission can submit its final report to the government after completion of the prescribed process, after which the path for a historic increase in the salaries of the employees will be completely cleared.