8th Pay Commission DA Calculations: How 2.57 fitment factor may impact Level 3-13 central govt employees' basic pay, dearness allowance
8th Pay Commission Calculations: Dearness allowance (DA) is an important part of a central government employee's gross salary as it helps their payouts meet inflation. The DA is revised every six months and currently stands at 55 per cent. But when basic salaries are revised in the 8th CPC, the DA payout will also increase in proportion. Know how it will impact Level 3-13 employees salary if the 8th Commission chooses a 2.57 fitment factor.
8th Pay Commission Calculations: Basic salary of a government employee remains the same during a 10-year tenure of a pay commission. But their dearness allowance (DA) and a few other allowances keep changing. DA is an important component of an employee's gross salary as it helps their payout meet inflation. Since it is revised every six months on the basis the All India Consumer Price Index- Industrial Workers (AICPA-IW) reading, the employee gets an increased salary twice a year. But when a pay commission revises the basic salary of an employee, the DA payout also increases in proportion to that. Know how it may change for Level 3-13 central govt employees if the 8th Pay Commission (8th CPC) picks a 2.57 fitment factor.
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(Disclaimer: These are projections. Actual salary revisions may vary.)
7th Pay Commission basic pay structure
The 7th Commission decided on a 2.57 fitment factor. It means basic salaries of central government employees were multiplied by 2.57 times. After this revision, the minimum salary jumped to Rs 18,000 and the maximum to Rs 250,000. Along with this basic pay, other allowance payout rates also changed.
How DA impacts central government employees' pays
The current DA stands at 55 per cent. Just have a look at what would have been the estimated salary for an employee with a Rs 30,000 basic salary when the DA rate was 25 per cent, 45 per cent, and now.
Basic salary- Rs 30,000
Salary when DA was 25 per cent- Rs 30,000+ Rs 7,500= Rs 37,500
Salary when DA was 45 per cent- Rs 30,000+ Rs 13,500= Rs 43,500
Salary as per current DA rate (55%)- Rs 30,000+ Rs 16,500= Rs 46,500
DA and fitment factor in 8th Pay Commission
If the fitment factor is 2.57, the estimated revised salary for an employee with a Rs 50,000 basic pay will increase to Rs 1,28,500. So, if, at a 55 per cent rate, they were getting a Rs 30,250 as DA, in the revised payout, the DA at 55 per cent will be Rs 70,675.
The 8th Pay Commission fitment factor will be known once the commission is established, the commission submits its report, and the Cabinet approves it. There are many speculations and projections. It may be in the range of 1.92-2.86.
Calculations for story
We will calculate the estimated revised basic pay and DA for Level 3 to 13 employees at a 2.57 fitment factor (the same as in 7th CPC). We will pick one basic pay slab from each level. We will take DA as 50 per cent of DA.
Estimated DA, pay for Level 3 employee (basic pay Rs 26,800)
Current basic pay- Rs 26,800
DA (at 50 per cent)- Rs 13,400
Salary at 50 per cent DA now- Rs 40,200
Estimated revised salary- Rs 68,876
DA (at 50 per cent)- Rs 34,438
Estimated salary at 50 per cent DA in 8th CPC- Rs 1,03,314
Estimated DA, pay for Level 4 employee (basic pay Rs 30,500)
Current basic pay- Rs 30,500
DA (at 50 per cent)- Rs 15,250
Salary at 50 per cent DA now- Rs 45,750
Estimated revised salary- Rs 78,385
DA (at 50 per cent)- Rs 39,192.5
Estimated salary at 50 per cent DA in 8th CPC- Rs 1,17,577.5
Estimated DA, pay for Level 5 employee (basic pay Rs 35,900)
Current basic pay- Rs 35,900
DA (at 50 per cent)- Rs 17,950
Salary at 50 per cent DA now- Rs 53,850
Estimated revised salary- Rs 92,263
DA (at 50 per cent)- Rs 46,131.5
Estimated salary at 50 per cent DA in 8th CPC- Rs 1,38,394.5
Estimated DA, pay for Level 6 employee (basic pay Rs 41,100)
Current basic pay- Rs 41,100
DA (at 50 per cent)- Rs 20,550
Salary at 50 per cent DA now- Rs 61,650
Estimated revised salary- Rs 1,05,627
DA (at 50 per cent)- Rs 52,813.5
Estimated salary at 50 per cent DA in 8th CPC- Rs 1,58,440.5
Estimated DA, pay for Level 7 employee (basic pay Rs 55,200)
Current basic pay- Rs 55,200
DA (at 50 per cent)- Rs 27,600
Salary at 50 per cent DA now- Rs 82,800
Estimated revised salary- Rs 1,41,864
DA (at 50 per cent)- Rs 70,932
Estimated salary at 50 per cent DA in 8th CPC- Rs 2,12,796
Estimated DA, pay for Level 8 employee (basic pay Rs 66,000)
Current basic pay- Rs 66,000
DA (at 50 per cent)- Rs 33,000
Salary at 50 per cent DA now- Rs 99,000
Estimated revised salary- Rs 1,69,620
DA (at 50 per cent)- Rs 84,810
Estimated salary at 50 per cent DA in 8th CPC- Rs 2,54,430
Estimated DA, pay for Level 9 employee (basic pay Rs 75,600)
Current basic pay- Rs 75,600
DA (at 50 per cent)- Rs 37,800
Salary at 50 per cent DA now- Rs 1,13,400
Estimated revised salary- Rs 1,94,292
DA (at 50 per cent)- Rs 97,146
Estimated salary at 50 per cent DA in 8th CPC- Rs 2,91,438
Estimated DA for Level 10 employee (basic pay Rs 87,400)
Current basic pay- Rs 87,400
DA (at 50 per cent)- Rs 43,700
Salary at 50 per cent DA now- Rs 1,31,100
Estimated revised salary- Rs 2,24,618
DA (at 50 per cent)- Rs 1,12,309
Estimated salary at 50 per cent DA in 8th CPC- Rs 3,36,927
Estimated DA for Level 11 employee (basic pay Rs 96,600)
Current basic pay- Rs 96,600
DA (at 50 per cent)- Rs 48,300
Salary at 50 per cent DA now- Rs 1,44,900
Estimated revised salary- Rs 2,48,262
DA (at 50 per cent)- Rs 1,24,131
Estimated salary at 50 per cent DA in 8th CPC- Rs 3,72,393
Estimated DA for Level 12 employee (basic pay Rs 1,12,400)
Current basic pay- Rs 1,12,400
DA (at 50 per cent)- Rs 56,200
Salary at 50 per cent DA now- Rs 1,68,600
Estimated revised salary- Rs 2,88,868
DA (at 50 per cent)- Rs 1,44,434
Estimated salary at 50 per cent DA in 8th CPC- Rs 4,33,302
Estimated DA for Level 13 employee (basic pay Rs 1,33,500)
Current basic pay- Rs 1,33,500
DA (at 50 per cent)- Rs 66,750
Salary at 50 per cent DA now- Rs 2,00,250
Estimated revised salary- Rs 3,43,095
DA (at 50 per cent)- Rs 1,71,547.5
Estimated salary at 50 per cent DA in 8th CPC- Rs 5,14,642.5