A substantial modification to the way government employee pay is determined is suggested by the 8th Pay Commission. According to Zee Business, the Fitment Factor, which serves as a multiplier to modify the salary, is the main basis for this adjustment.
 
The Eighth Pay Commission: A Comprehensive Guide
 
Let's simplify the procedure for figuring out these increases:
 
Step 1: Understanding the Fitment Factor

The Fitment Factor is a number used to multiply an employee's current basic salary under the 7th Pay Commission to arrive at their new basic salary under the 8th Pay Commission.

For example, the Fitment Factor proposed for the 8th Pay Commission is 2.28. This means that employees' salaries will be multiplied by 2.28 to calculate their new pay.

Step 2: The Calculation Process

To calculate the new salary, simply multiply the employee's current salary by the Fitment Factor.

Formula:

New Salary = Current Salary x Fitment Factor

Let's go through an example to understand how this works:

Example 1: A Level 1 Employee

Current Salary (7th Pay Commission): ₹18,000

Fitment Factor: 2.28

Calculation:

New Salary = ₹18,000 x 2.28

New Salary = ₹40,944

So, under the 8th Pay Commission, this employee's salary will increase to approximately ₹41,000 (rounded to the nearest hundred).

Example 2: A Level 2 Employee

Current Salary (7th Pay Commission): ₹19,900

Fitment Factor: 2.28

Calculation:

New Salary = ₹19,900 x 2.28

New Salary = ₹45,372

So, a Level 2 employee will see their salary increase to ₹45,400 (rounded).

Step 3: Factor in the Dearness Allowance (DA)

The Dearness Allowance (DA) is an additional amount provided to employees to offset the impact of inflation. The DA is added to the basic salary and will also be included in the new salary structure under the 8th Pay Commission.

In this case, the DA is expected to reach 70% by 2026. So, the DA will also be added to the new basic salary.

Example 3: Including DA

Let's take the example of a Level 1 employee, whose new basic salary is ₹40,944.

New Basic Salary: ₹40,944

Expected DA (70%): 70% of ₹40,944 = ₹28,660.80

Total Salary (Basic + DA) = ₹40,944 + ₹28,660.80 = ₹69,604.80

So, the total salary for this employee would be ₹69,600

Step 4: How to Use the Pay Matrix

The Pay Matrix is a table that shows the salary for each level in the 8th Pay Commission, based on the Fitment Factor. This simplifies the calculation process, as the new pay for each level is already pre-calculated in the Pay Matrix.

For example, a Level 1 employee's salary will go from ₹18,000 to ₹21,600, while a Level 13 employee's salary will go from ₹1,23,100 to ₹1,47,720.
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8th Pay Commission

SIBY JEYYA

17/01/2025 09:13 AM