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.
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.
click and follow Indiaherald WhatsApp channel