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8th Pay Commission DA Calculations: How 2.57 fitment factor may impact Level 3-13 central govt employees' basic pay, dearness allowance
- Written by Shaghil Bilali
Published: Zee Business| Updated: Zee Business
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.
Photos: Unsplash/Pixabay/Pexels
(Disclaimer: These are projections. Actual salary revisions may vary.)
1/15
7th Pay Commission basic pay structure
1/15The 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.
2/15
How DA impacts central government employees' pays
2/15The 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
3/15
DA and fitment factor in 8th Pay Commission
3/15If 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.
4/15
Calculations for story
4/15We 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.
5/15
Estimated DA, pay for Level 3 employee (basic pay Rs 26,800)
5/15Current 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
6/15
Estimated DA, pay for Level 4 employee (basic pay Rs 30,500)
6/15Current 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
7/15
Estimated DA, pay for Level 5 employee (basic pay Rs 35,900)
7/15Current 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
8/15
Estimated DA, pay for Level 6 employee (basic pay Rs 41,100)
8/15Current 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
9/15
Estimated DA, pay for Level 7 employee (basic pay Rs 55,200)
9/15Current 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
10/15
Estimated DA, pay for Level 8 employee (basic pay Rs 66,000)
10/15Current 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
11/15
Estimated DA, pay for Level 9 employee (basic pay Rs 75,600)
11/15Current 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
12/15
Estimated DA for Level 10 employee (basic pay Rs 87,400)
12/15Current 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
13/15
Estimated DA for Level 11 employee (basic pay Rs 96,600)
13/15Current 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
14/15
Estimated DA for Level 12 employee (basic pay Rs 1,12,400)
14/15Current 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
15/15
Estimated DA for Level 13 employee (basic pay Rs 1,33,500)
15/15Current 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
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