8th Pay Commission Calculator: Here’s What Govt Employees’ Salaries Could Look Like at 2.86 Fitment Factor

With the announcement of the 8th Pay Commission, discussions have intensified around the fitment factor, an important component that will determine the revised salaries and pensions of central government employees and pensioners.

According to various reports, the fitment factor could range between 1.92 and 2.86, as per news reports. This multiplier is key to calculating the updated pay structures and retirement benefits under the new pay commission.

Let’s take a look at how much salary you could receive if the fitment factor is set at 2.86.

What Is the Fitment Factor?

The fitment factor is a multiplier used to calculate the revised basic salary from the existing pay. If the factor increases, so does the basic pay, and consequently, the total salary.

So, if your current basic pay is ₹18,000 and the fitment factor becomes 2.86, your revised pay would be:

₹18,000 × 2.86 = ₹51,480

This revised figure then becomes the new basis for calculating various allowances like Dearness Allowance (DA), House Rent Allowance (HRA), and Transport Allowance (TA).

8th Pay Calculator: Estimated Salary Structure (Scenario-Based)

Note: These are estimated values based on basic pay. Actual in-hand salary will also include additional allowances.

What Will Be the DA Under the 8th Pay Commission?

One of the key topics of discussion for both employees and pensioners has been the potential merger of Dearness Allowance (DA) with basic pay. 

Following the recent 2% hike, the DA now stands at 55%. Under previous pay commissions, the basic pay was merged with the DA before applying the fitment factor, and this approach is expected to continue under the 8th Pay Commission as well.

However, news reports indicate that if the merger occurs, the fitment factor might be lower. For instance, under the 7th Pay Commission, the minimum basic pay at Level 1 was ₹18,000, but with a 55% DA merger, it would rise to ₹27,900.

If the fitment factor is applied to this revised amount of ₹27,900, it could result in a higher salary.

Read More: 8th Pay Commission: Demand to Merge DA With Basic Pay Resurfaces.

Conclusion

The 8th Pay Commission is expected to bring significant changes to the salaries and pensions of government employees. If the fitment factor is set at 2.86, employees will see a revision in their basic pay, which will then influence various allowances. 

While discussions about the merger of Dearness Allowance with basic pay continue, it remains an important factor in determining the final salary structure. With the potential for a revised fitment factor range between 1.92 and 2.86, government employees can look forward to notable improvements in their take-home pay.

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