How much can the salary of Level-10 (GP-5400) officers increase with the 8th Pay Commission (8th CPC)? What role will the fitment factor play and how will your new basic pay, DA, TA, HRA be decided? Know important points and estimates.
8th CPC Salary Calculator: The wait for the 8th Pay Commission is gradually getting more intense for central government officials and employees. Everyone wants to know how much their salary will increase, especially when it comes to important posts like Level-10 (Grade Pay-5400). An important formula called fitment factor works in how your current basic salary will change to a new, increased basic salary. Then many allowances like dearness allowance (DA), house rent allowance (HRA) and travel allowance (TA) are added to this new basic, which determines your total monthly salary (Net Salary).
How can this whole process work in the 8th Pay Commission and what effect can it have on the salary of level-10 officers. We will also give you a salary calculator, so that you can calculate your estimated new salary yourself.
When is the 8th Pay Commission Expected?
Every 10 years, the government forms a commission to increase the salary of its employees and to fix other facilities, which is called the Pay Commission. The previous one, i.e. the 7th Pay Commission, came on 1 January 2016. So according to that, now the 8th Pay Commission is expected to be implemented from 1 January 2026. Level-10 officers do very important work for the government, so there is a hope of a good increase in their salary.
What will be the fitment factor? (How much will be the Fitment Factor?)
The biggest question and the center of curiosity about the 8th Pay Commission is its Fitment Factor. This is the magical figure that will decide how big the basic salary of central employees will increase. Remind that the fitment factor in the 7th Pay Commission was 2.57.
What are the speculations right now?
At present, there has been no official announcement from the government regarding the formation of the 8th Pay Commission or the fitment factor. However, many speculations are being made based on the demands of employee organizations. If sources are to be believed, the fitment factor may be around 1.92 on the lines of the old pay commissions. The government does not want to keep the salary hike too high. At the same time, some estimates are talking about it going up to 2.08, 2.86 or even more than 3.68.
How will the basic salary change? (How Will Basic Salary Change?)
Whenever a new pay commission comes, it decides a ‘fitment factor’. This is a number by which your current (7th Pay Commission) basic salary is multiplied, and this gives your new basic salary of the new pay commission (ie 8th CPC).
For example, the fitment factor in the 7th Pay Commission was 2.57. This meant that if someone’s old basic salary was ₹ 10,000, then the new basic salary became ₹ 10,000 * 2.57 = ₹ 25,700.
The fitment factor of the 8th Pay Commission has not been decided yet. Different news reports and unions are making their own estimates. Experts believe that it could be around 1.92.
How Will DA, HRA, TA Be Added?
Once your new basic salary is decided, several allowances are added to it, which increase your total earnings:
Dearness Allowance (DA)
This allowance is given to deal with rising inflation. It is usually zeroed at the beginning of the new pay commission and it is calculated afresh on the new basic salary (when the government announces it).
House Rent Allowance (HRA)
This is a fixed percentage of your new basic salary based on your city (X, Y, or Z class city). HRA is higher in big cities.
Transport Allowance (TA)
This is given for the expenses of traveling to and from your work and it also depends on your pay level and city. Apart from these main allowances, there may be some other minor allowances as well, which depend on your posting and department.
Understand Deductions Too
The total amount that is formed after adding all the allowances mentioned above to the new basic salary is called Gross Salary. But this entire amount does not come in your hands. There are some important deductions from this, such as.
1. National Pension System (NPS)
10% of your new basic salary and DA is deposited in NPS.
2. Income Tax
Tax levied on your total annual income.
3. Professional Tax
This is also deducted in some states.
The money that comes into your bank account after these deductions is called Net Salary or ‘in-hand salary’. In our salary calculator, you will be able to see an estimated calculation of all these things.
How much salary increase in last pay Commission?
| Pay Commission | Fitment Factor | % Of Increase | Minimum Pay |
|---|---|---|---|
| 2nd CPC | – | 14.2% | Rs.70 |
| 3rd CPC | – | 20.6% | Rs.196 |
| 4th CPC | – | 27.6% | Rs.750 |
| 5th CPC | – | 31% | Rs.2550 |
| 6th CPC | 1.86 | 54% | Rs.7000 |
| 7th CPC | 2.57 | 14.29% | Rs.18000 |
| 8th CPC | 1.92 – 2.86 |
Calculate salary with the help of salary calculator
The 8th Pay Commission will definitely bring significant financial changes for the level-10 officers and all other employees of the Central Government. What will be the fitment factor and the rates of various allowances will be known only after the recommendations of the Commission and the final approval of the government. But till then with the help of the salary calculator you can get a rough estimate of the possible increased salary.
Disclaimer
The calculations given here are for approximate and informational purposes only. All the figures related to the 8th Pay Commission, the fitment factor and the rates of allowances will be valid only after the official recommendations of the Commission and final notification by the Government of India, which may differ from the estimates given here.
