8th Pay Commission salary calculator: How Level 10 employees can get Rs 25 lakh extra gross salary in 10 years at 6% annual increment rate

In their memos to the 8^th Pay Commission, groups representing central government employees and pensioners have strongly highlighted the need to raise the annual increment cap. They have recommended increasing the increment rate from its current rate of 3% to up to 7%.

Their key argument is that a 3% annual increment barely meets rising expenses, specially for employees at low levels. They also say that not only is a higher increment rate necessary, but the 8^th Pay Commission should also merge dearness allowance (DA) with basic pay when DA reaches 25%.

What central government employee bodies’ have recommended about annual increment?


Central government employee bodies want the 8^th Pay Commission to increase the annual increment rate from 3% to at least 5%. However, the increment rate they are asking for vary.

Also Read: RBI MPC: Home loan borrowers can breathe a sigh of relief, but how long their good days will last?

The National Council of the Joint Consultative Machinery (NC-JCM), the main central government employee body in India, in its memorandum submitted to the 8th Pay Commission, has suggested raising the annual increment rate to 6%.

The All India Defence Employees’ Federation (AIDEF), the body that represents defence civilian employees, and the Federation of National Postal Organisations (FNPO) have also suggested increasing the annual increment rate to 6%.

On the other hand, the All India New Pension Scheme Employees Federation (AINPSEF), has recommended that the increment should be 7% annually.

Also Read: RBI policy: Will high-interest rate cycle return for FD investors as RBI holds repo rate amid rising inflation?

Employee bodies’ recommendations for annual increment from 8th Pay Commission

Organisation	Proposed annual increment
National Council of the Joint Consultative Machinery (NC-JCM)	6%
All India Defence Employees' Federation (AIDEF)	6%
Federation of National Postal Organisations (FNPO)	6%
All India New Pension Scheme Employees Federation (AINPSEF)	7%
Indian Railways' Technical Supervisors' Association (IRTSA)	5%

Source: Official memorandum submitted to 8th Pay Commission

How higher increment rate can boost gross salaries of central government employees

Projecting higher increment rates, a Bankbazaar calculation shows that if the 8th Pay Commission opts for a 2.1 fitment factor and raises the annual increment rate from 3% to 6%, a Level 10 employee could see an additional rise of Rs 24.27 lakh in their gross pay in 10 years.

The projection further shows that given the same increment conditions, a Level 12 employee can take home an additional gross income of Rs 34.09 lakh in 10 years.

Also Read: 8th Pay Commission schedules Jaipur meetings with employee and pensioner bodies; key dates, deadline to apply

Who are the Level 10 and 12 central government employees?

According to the 7^th Pay Commission pay matrix, Level 10 central government employees are entry-level Group A officers and equivalent posts. These can be entry-level Indian Administrative Services (IAS) or Indian Police Service (IPS) officers.

Level 12 employees are senior Group A officers and equivalent posts.

Pay level	Starting basic pay	Examples of designations/posts
Level 10	₹ 56,100	Assistant Commissioner, Assistant Director, Assistant Secretary/Under Secretary-level posts in some cadres, entry-level Group A officers, Assistant Executive Engineer, and equivalent Group A posts
Level 12	₹ 78,800	Deputy Secretary-level posts, Deputy Director, Joint Commissioner-level posts in some departments, Executive Engineer and other equivalent senior Group A posts

How higher annual increment can boost gross salaries of Level 10 and 12 central government employees

In its projections for Level 10 and 12 employees, Bankbazaar calculated how they may get up to over Rs 34 lakh extra gross pay in 10 years if the 8th Pay Commission settles on a 2.1 fitment factor and increases the annual increment rate to 6%.

Gross pay benefit for Level 10 employees in 10 years at 6% increment rate, 2.1 fitment factor

Particulars	Amount
Basic pay – Level 10	₹ 56,100
Revised basic @ 2.1x	₹ 1,17,810

Year	Monthly Basic (with 3% Increment)	Annual Salary (3%)	Monthly Basic (with 6% Increment)	Annual Salary (6%)
1	₹ 1,17,810	₹ 14,13,720	₹ 1,17,810	₹ 14,13,720
2	₹ 1,21,344	₹ 14,56,132	₹ 1,24,879	₹ 14,98,543
3	₹ 1,24,985	₹ 14,99,816	₹ 1,32,371	₹ 15,88,456
4	₹ 1,28,734	₹ 15,44,810	₹ 1,40,314	₹ 16,83,763
5	₹ 1,32,596	₹ 15,91,154	₹ 1,48,732	₹ 17,84,789
6	₹ 1,36,574	₹ 16,38,889	₹ 1,57,656	₹ 18,91,876
7	₹ 1,40,671	₹ 16,88,056	₹ 1,67,116	₹ 20,05,389
8	₹ 1,44,891	₹ 17,38,697	₹ 1,77,143	₹ 21,25,712
9	₹ 1,49,238	₹ 17,90,858	₹ 1,87,771	₹ 22,53,255
10	₹ 1,53,715	₹ 18,44,584	₹ 1,99,038	₹ 23,88,450
Total pay in 10 years		₹ 1,62,06,715		₹ 1,86,33,953
Extra pay in 10 years				₹ 24,27,238 (15%)

Source: Bankbazaar

Note: Illustrative estimates based on assumed fitment factors and annual increment rates. Actual pay progression may differ. Source: BankBazaar.com.

In the calculations, you can see that a Level 10 employee may get nearly 15% extra gross pay in 10 years at a 2.1 fitment factor and 6% annual increment rate.

Gross pay benefit for Level 12 employees in 10 years at 6% increment rate, 2.1 fitment factor

Particulars	Amount
Basic pay – Level 12	₹ 78,800
Revised basic @ 2.1x	₹ 1,65,480

Year	Monthly Basic (with 3% Increment)	Annual Salary (3%)	Monthly Basic (with 6% Increment)	Annual Salary (6%)
1	₹ 1,65,480	₹ 19,85,760	₹ 1,65,480	₹ 19,85,760
2	₹ 1,70,444	₹ 20,45,333	₹ 1,75,409	₹ 21,04,906
3	₹ 1,75,558	₹ 21,06,693	₹ 1,85,933	₹ 22,31,200
4	₹ 1,80,824	₹ 21,69,894	₹ 1,97,089	₹ 23,65,072
5	₹ 1,86,249	₹ 22,34,990	₹ 2,08,915	₹ 25,06,976
6	₹ 1,91,837	₹ 23,02,040	₹ 2,21,450	₹ 26,57,395
7	₹ 1,97,592	₹ 23,71,101	₹ 2,34,737	₹ 28,16,839
8	₹ 2,03,520	₹ 24,42,234	₹ 2,48,821	₹ 29,85,849
9	₹ 2,09,625	₹ 25,15,501	₹ 2,63,750	₹ 31,65,000
10	₹ 2,15,914	₹ 25,90,966	₹ 2,79,575	₹ 33,54,900
Total pay in 10 years		₹ 2,27,64,513		₹ 2,61,73,895
Extra pay in 10 years				₹ 34,09,382

Source: Bankbazaar

Since Level 12 employees are at a higher pay scale compared to Level 10 employees, their gross pay increase in a decade may be over Rs 34 lakh.

Assumptions for annual increment calculations

• Basic salary= As per 7th Pay Commission
• Revised salary - Basic pay x fitment factor (2.1)
• Annual increment (at 3%) of revised basic pay
• Total salary in 10 years (at 3% increment)
• Annual increment (at 6%) of revised basic pay
• Total salary in 10 years (at 6% increment)
• Extra salary in 10 years = (Total pay in 10 years at 6% annual increment) - (Total pay in 10 years pay at 3% annual increment)