8th Pay Commission calculator: Estimate Level 4-7 salary arrears for 20-month delay at 2.0 to 2.57 fitment factors
By Anshika Jain, ET Online |
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8th Pay Commission arrears: Which salary components may qualify?
Central government employees typically receive basic pay, dearness allowance (DA), house rent allowance (HRA) and transport allowance (TPTA) as salary components. However, arrears following a new Pay Commission may not apply to all these components. Past practices suggest that basic pay is the key salary component on which employees receive arrears.
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8th Pay Commission basic pay arrears: How will they be calculated?
The fitment factor is applied to an employee’s existing basic pay to determine the revised basic salary. If implementation of the 8th Pay Commission is delayed, employees may receive arrears on the difference in basic pay for the delayed period. For instance, an 18-month delay would mean basic pay arrears for 18 months.
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Will employees get DA, HRA and transport allowance arrears?
The government revises DA twice a year based on the consumer price index, so arrears are generally not provided on this component. HRA is calculated as a percentage of basic pay and changes when basic pay is revised. Past practices suggest HRA arrears are not provided.
Similarly, Transport allowance (TPTA) charges are fixed in every pay commission, but they also increase with DA, and arrears are generally not provided on transport allowance.
Similarly, Transport allowance (TPTA) charges are fixed in every pay commission, but they also increase with DA, and arrears are generally not provided on transport allowance.
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Level 4-7 arrears at 2.0 fitment factor
Assuming the 8th Pay Commission is delayed by 20 months, here are the estimated basic pay arrears for Level 4, 5, 6 and 7 employees if a 2.0 fitment factor is applied.
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Level 4-7 arrears at 2.15 fitment factor
How much could Level 4-7 central government employees receive if the government approves a 2.15 fitment factor and there is a 20-month implementation delay?
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Level 4-7 arrears at 2.28 fitment factor
Here are the estimated basic pay arrears for Level 4-7 employees at a 2.28 fitment factor, assuming a 20-month delay in implementing the 8th Pay Commission.
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Level 4-7 arrears at 2.57 fitment factor
At a 2.57 fitment factor, the estimated arrears for Level 4-7 employees would be higher. The calculations assume arrears on basic pay for a 20-month delay. These figures are only estimates. The actual arrears for Level 4-7 central government employees will be known only after the government officially notifies the applicable rates.
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