8th Pay Commission salary hike: Will 2.0 fitment factor increase gross salary by just 31%? Check pay calculator

When a pay commission is formed, every central government employee expects a big bump in their salary. The increase depends on the fitment factor, where a high fitment factor means a high raise in basic salary. But does the gross salary also rise by the same proportion? For example, a 2.0 fitment factor means a 100% rise in the basic salary. But does it also mean the gross salary of the same employee will be double? A Bankbazaar projection shows that even if the 8^th Pay Commission decides on fitment factors in the range of 2.0-2.57, the gross salary increase for Level 1-18 employees could only be 31-68%.

Past gross salary hikes under different pay commissions

Looking at the historical data from the 4^th to 7^th Pay Commissions, the maximum hike in gross salary has been 54% under the 6^th Pay Commission when the fitment factor was 1.86. The 7^th Pay Commission set a 2.57 fitment factor for central government employees, but the hike in gross salary was just 14.29%. The reason behind this indifference is that the gross salary also includes allowances such as dearness allowance (DA), house rent allowance (HRA), transport allowance (TPTA) among other allowances.


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While the DA is set at 0% in the beginning of a pay commission, revised HRA is given on the basis of the revised basic pay. But other allowances can be set by the government on its own. So, when we sum these amounts, gross salary may vary because of different amounts set for non-basic pay-linked allowances.

Gross salary hike under different pay commission

Pay Commission	Hike in Gross Pay	Fitment Factor	Minimum Basic Salary
4th Pay Commission	27.60%	—	₹ 750
5th Pay Commission	31%	—	₹ 2,550
6th Pay Commission	54%	1.86	₹ 7,000
7th Pay Commission	14.29%	2.57	₹ 18,000

Salary components of central government employees

Salary components vary depending on work, status of job, risk in job, place of posting, etc. But the basic components of salary for most employees are basic pay, dearness allowance (DA) house rent allowance (HRA) and transport allowance (TPTA).

Estimated gross salary hike in the 8^th Pay Commission

In its calculations, Bankbazaar shows the estimated gross salary increase for Level 1-10 employees at fitment factors of 2.0, 2.38 and 2.57 in the 8^th Pay Commission. A fitment factor is a multiplier for salary revision. A 2.0 fitment factor means the basic salary of an employee will double.

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Particulars for gross salary growth calculation

Current salary= current basic salary (e.g., Level 1= Rs 18,000)

Gross salary= Basic salary+DA (60% of basic pay)+HRA (24% of basic pay for X category cities)

Revised basic salary= Current basic payX fitment factor

New gross salary= Revised basic salary+ 24% of revised basic salary (for X category city)

Basic pay hike (%)= Revised basic-current basic pay (%)

Gross salary hike (%)= % hike of new vs old gross salary

Growth ratio= Gross salary hike/basic pay hike

For easy understanding of readers, Bankbazaar has left out TPTA and other allowances and has taken just basic pay and HRA for gross salary calculations.

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Estimated salary growth for Level 1 employees at 2.0, 2.38 and 2.57 fitment factors

Current Basic	₹ 18,000
Current Gross Salary (60% DA+24% HRA)	₹ 34,200

Fitment Factor	Revised Basic	New Gross Salary	Basic Pay Hike	Gross salary hike	Ratio
2	₹ 36,000	₹ 44,640	100%	31%	0.31
2.38	₹ 42,840	₹ 53,122	138%	55%	0.40
2.57	₹ 46,260	₹ 57,362	157%	68%	0.43

Estimated salary growth for Level 2 employees at 2.0, 2.38 and 2.57 fitment factors

Current Basic	₹ 19,900
Current Gross Salary	₹ 37,810

Fitment Factor	Revised Basic	New Gross Salary	Basic Pay Hike	Gross salary hike	Ratio
2	₹ 39,800	₹ 49,352	100%	31%	0.31
2.38	₹ 47,362	₹ 58,729	138%	55%	0.40
2.57	₹ 51,143	₹ 63,417	157%	68%	0.43

Estimated salary growth for Level 3 employees at 2.0, 2.38 and 2.57 fitment factors

Current Basic	₹ 21,700
Current Gross Salary	₹ 41,230

Fitment Factor	Revised Basic	New Gross Salary	Basic Pay Hike	Gross salary hike	Ratio
2	₹ 43,400	₹ 53,816	100%	31%	0.31
2.38	₹ 51,646	₹ 64,041	138%	55%	0.40
2.57	₹ 55,769	₹ 69,154	157%	68%	0.43

Estimated salary growth for Level 4 employees at 2.0, 2.38 and 2.57 fitment factors

Current Basic	₹ 25,500
Current Gross Salary	₹ 48,450

Fitment Factor	Revised Basic	New Gross Salary	Basic Pay Hike	Gross salary hike	Ratio
2	₹ 51,000	₹ 63,240	100%	31%	0.31
2.38	₹ 60,690	₹ 75,256	138%	55%	0.40
2.57	₹ 65,535	₹ 81,263	157%	68%	0.43

Estimated salary growth for Level 5 employees at 2.0, 2.38 and 2.57 fitment factors

Current Basic	₹ 29,200
Current Gross Salary	₹ 55,480

Fitment Factor	Revised Basic	New Gross Salary	Basic Pay Hike	Gross salary hike	Ratio
2	₹ 58,400	₹ 72,416	100%	31%	0.31
2.38	₹ 69,496	₹ 86,175	138%	55%	0.40
2.57	₹ 75,044	₹ 93,055	157%	68%	0.43

Estimated salary growth for Level 6 employees at 2.0, 2.38 and 2.57 fitment factors

Current Basic	₹ 35,400
Current Gross Salary	₹ 67,260

Fitment Factor	Revised Basic	New Gross Salary	Basic Pay Hike	Gross Salary Hike	Ratio
2	₹ 70,800	₹ 87,792	100%	30.50%	0.31
2.38	₹ 84,252	₹ 1,04,472	138%	55.30%	0.40
2.57	₹ 90,978	₹ 1,12,813	157%	67.70%	0.43

Estimated salary growth for Level 7 employees at 2.0, 2.38 and 2.57 fitment factors

Current Basic	₹ 44,900
Current Gross Salary	₹ 85,310

Fitment Factor	Revised Basic	New Gross Salary	Basic Pay Hike	Gross salary hike	Ratio
2	₹ 89,800	₹ 1,11,352	100%	31%	0.31
2.38	₹ 1,06,862	₹ 1,32,509	138%	55%	0.40
2.57	₹ 1,15,393	₹ 1,43,087	157%	68%	0.43

Estimated salary growth for Level 8 employees at 2.0, 2.38 and 2.57 fitment factors

Current Basic	₹ 47,600
Current Gross Salary	₹ 90,440

Fitment Factor	Revised Basic	New Gross Salary	Basic Pay Hike	Gross salary hike	Ratio
2	₹ 95,200	₹ 1,18,048	100%	31%	0.31
2.38	₹ 1,13,288	₹ 1,40,477	138%	55%	0.40
2.57	₹ 1,22,332	₹ 1,51,692	157%	68%	0.43

Estimated salary growth for Level 9 employees at 2.0, 2.38 and 2.57 fitment factors

Current Basic	₹ 53,100
Current Gross Salary	₹ 1,00,890

Fitment Factor	Revised Basic	New Gross Salary	Basic Pay Hike	Gross salary hike	Ratio
2	₹ 1,06,200	₹ 1,31,688	100%	31%	0.31
2.38	₹ 1,26,378	₹ 1,56,709	138%	55%	0.40
2.57	₹ 1,36,467	₹ 1,69,219	157%	68%	0.43

Estimated salary growth for Level 10 employees at 2.0, 2.38 and 2.57 fitment factors

Current Basic	₹ 56,100
Current Gross Salary	₹ 1,06,590

Fitment Factor	Revised Basic	New Gross Salary	Basic Pay Hike	Gross salary hike	Ratio
2	₹ 1,12,200	₹ 1,39,128	100%	31%	0.31
2.38	₹ 1,33,518	₹ 1,65,562	138%	55%	0.40
2.57	₹ 1,44,177	₹ 1,78,779	157%	68%	0.43

Disclaimer: Illustrative estimates based on assumed fitment factors; final pay and allowances may vary. Source: BankBazaar.com