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8th Pay Commission Calculations: A pay commission revises the basic salary for approximately 10 years, but central government employees get a regular increase in their salary through dearness allowance (DA) revision. DA is revised on the basis of the reading of the All India Consumer Price Index- Industrial Workers (AICPA-IW). The government increases DA rates twice a year. It means every 6 months, they adjust employee salaries to rising inflation. But when a pay commission revises the basic salary of employees, the calculation of DA also changes because of the new pay slabs. Know how it may change for Level 3-13 central govt employees if the 8th Pay Commission (8th CPC) picks a 2.4 fitment factor. 

The 7th Commission decided on a 2.57 fitment factor.

It means the basic salary of central government employees was multiplied by 2.57 times.

It raised the minimum salary to Rs 18,000 and the maximum to Rs 250,000.

Along with this basic pay and other allowances, employees get DA as the main allowance. 

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 25,000 basic salary when the DA rate was 25 per cent, 45 per cent, and now.

Basic salary- Rs 25,000

Salary when DA was 25 per cent- Rs 25,000+ Rs 6,250= Rs 31,250   

Salary when DA was 45 per cent- Rs 25,000+ Rs 11,250= Rs 36,250   

Salary as per current DA rate (55%)- Rs 25,000+ Rs 11,250= Rs 38,750

The DA is merged at the end of a pay commission with the basic salary. The new DA reading starts at 0. For the 7th Pay Commission, one more DA hike is due. The revised DA is most likely to be merged with the basic pay in the 8th Pay Commission. 

The 8th Pay Commission fitment factor will be known once the commission is formed and its report is approved by the central government. There are many speculations and projections. It may be in the range of 1.92-2.86.

We will calculate the estimated revised basic pay and DA for Level 3 to 13 employees at a 2.4 fitment factor. We will pick one basic pay slab from each level.

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 64,320

DA (at 50 per cent)- Rs 32,160

Estimated salary at 50 per cent DA in 8th CPC- Rs 96,480

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 73,200

DA (at 50 per cent)- Rs 36,600

Estimated salary at 50 per cent DA in 8th CPC- Rs 1,09,800

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 86,160

DA (at 50 per cent)- Rs 43,080

Estimated salary at 50 per cent DA in 8th CPC- Rs 1,29,240

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 98,640

DA (at 50 per cent)- Rs 49,320

Estimated salary at 50 per cent DA in 8th CPC- Rs 1,47,960

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 1,32,480

DA (at 50 per cent)- Rs 66,240

Estimated salary at 50 per cent DA in 8th CPC- Rs 1,98,720

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 1,58,400

DA (at 50 per cent)- Rs 79,200

Estimated salary at 50 per cent DA in 8th CPC- Rs 2,37,600

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 1,81,440

DA (at 50 per cent)- Rs 90,720

Estimated salary at 50 per cent DA in 8th CPC- Rs 2,72,160

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 2,09,760

DA (at 50 per cent)- Rs 1,04,880

Estimated salary at 50 per cent DA in 8th CPC- Rs 3,14,640

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 2,31,840

DA (at 50 per cent)- Rs 1,15,920

Estimated salary at 50 per cent DA in 8th CPC- Rs 3,47,760

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 2,69,760

DA (at 50 per cent)- Rs 1,34,880

Estimated salary at 50 per cent DA in 8th CPC- Rs 4,04,640

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 3,20,400

DA (at 50 per cent)- Rs 1,60,200

Estimated salary at 50 per cent DA in 8th CPC- Rs 4,80,600

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