8th Pay Commission salary calculator: Why Level 11-18 employees may see just 68% gross salary hike even at 2.57 fitment factor

As the 8^th Pay Commission is busy preparing its recommendations, central government employees are eagerly waiting for a high fitment factor, the multiplier that will boost their pay. The National Council – Joint Consultative Machinery (NC-JCM), the main central government employee body, has demanded a 3.833 fitment factor from the 8^th Pay Commission.

While some experts argue that this figure is too ambitious, many believe the 8^th CPC will settle for a fitment factor between 2.0 and 2.25. However, even if the Pay Commission finalises a 2.25 fitment factor, does it mean the gross salary of the central government employees will increase by the same proportion?

Past data shows that in the 7^th Pay Commission, gross salaries of employees rose by just 14.29% despite a 2.57 fitment factor. On the other hand, the fitment factor in the 6^th Pay Commission was 1.86, but the gross salary hike was 54%. A Bankbazaar projection shows that even if the 8^th Pay Commission finalises a fitment factor in the range of 2.0-2.57, the gross salary of Level 1-18 employees could rise only by 31-68%


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

A Bankbazaar projection shows that even if the 8^th Pay Commission finalises fitment factors in the range of 2.0-2.57, the gross salary of Level 1-18 employees could only rise only by 31-68%.

Gross salary hikes under 4^th-7^th Pay Commissions

Looking at the gross salary hike data from the 4^th to the 7^th Pay Commission, the biggest jump was 54% under the 6^th Pay Commission with a fitment factor of 1.86. In contrast, the 7^th Pay Commission, which had a fitment factor of 2.57, offered the smallest salary increase of 14.29%. The gross salary hikes for the 4^th and 5^th Pay Commissions were 27.60% and 31%, respectively.

This might leave many readers scratching their heads, wondering how the gross salary hike could be lower even with a higher fitment factor.

Why gross salary hike may be less despite high fitment factor?

The current DA rate plays a significant role in this situation. For instance, when the 7^th Pay Commission was implemented, it included a DA rate of 125% from the 6^th Pay Commission. This indicated that without any increase, the existing fitment factor stood at 2.25 (100% for basic pay+125% for DA). So, a 2.57 fitment factor didn’t mean a 157% hike.

Also Read: How NRIs, OCIs can get 45% annual return on $1 lakh FCNR (B) deposit as this bank in India offers 19X leverage; Should you go for it?

Manjeet Singh Patel, president, All India New Pension Scheme Employees Federation (AINPSEF), told ET Wealth that other than the high DA rate accommodation, the employees’ basic salaries of the previous pay commission were also normalise in the 7^th Pay Commission to draw parity.

“So, the average pay hike turned out to be just 14.29%. However, at the time of the 6^th Pay Commission, the prevailing DA rate was just 24%, which means the prevailing fitment factor of 1.24 was already there. That’s why a 1.86 fitment factor gave a 54% gross salary hike,” says Patel.

Gross salary hike under 4^th-7^th Pay Commissions

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

Main salary components of central government employees

While basic salary, DA, HRA and TPTA are common allowances to nearly all central government employees, other salary allowances may vary depending on an employee’s work, status of job, risk in job, place of posting, etc.

Estimated gross salary hike in the 8^th Pay Commission

In its projections, Bankbazaar shows the estimated gross salary increase for Level 11-18 employees at fitment factors of 2.0, 2.38 and 2.57 under the 8^th Pay Commission. Projections that only took the basic pay and HRA for calculations show the estimated hike to be 31%-53%.

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

The gross salary for calculations includes the basic salary, DA and HRA.

Estimated salary growth for Level 11 employees at 2.0, 2.38 and 2.57 fitment factors

Current Basic	₹ 67,700
Current Gross Salary	₹ 1,28,630

Fitment Factor	Revised Basic	New Gross Salary	Basic Pay Hike	Gross salary hike	Ratio
2	₹ 1,35,400	₹ 1,67,896	100%	31%	0.31
2.38	₹ 1,61,126	₹ 1,99,796	138%	55%	0.40
2.57	₹ 1,73,989	₹ 2,15,746	157%	68%	0.43

Estimated salary growth for Level 12 employees at 2.0, 2.38 and 2.57 fitment factors

Current Basic	₹ 78,800
Current Gross Salary	₹ 1,49,720

Fitment Factor	Revised Basic	New Gross Salary	Basic Pay Hike	Gross salary hike	Ratio
2	₹ 1,57,600	₹ 1,95,424	100%	31%	0.31
2.38	₹ 1,87,544	₹ 2,32,555	138%	55%	0.40
2.57	₹ 2,02,516	₹ 2,51,120	157%	68%	0.43

Estimated salary growth for Level 13 employees at 2.0, 2.38 and 2.57 fitment factors

Current Basic	₹ 1,23,100
Current Gross Salary	₹ 2,33,890

Fitment Factor	Revised Basic	New Gross Salary	Basic Pay Hike	Gross salary hike	Ratio
2	₹ 2,46,200	₹ 3,05,288	100%	31%	0.31
2.38	₹ 2,92,978	₹ 3,63,293	138%	55%	0.40
2.57	₹ 3,16,367	₹ 3,92,295	157%	68%	0.43

Estimated salary growth for Level 13A employees at 2.0, 2.38 and 2.57 fitment factors

Current Basic	₹ 1,31,100
Current Gross Salary	₹ 2,49,090

Fitment Factor	Revised Basic	New Gross Salary	Basic Pay Hike	Gross salary hike	Ratio
2	₹ 2,62,200	₹ 3,25,128	100%	31%	0.31
2.38	₹ 3,12,018	₹ 3,86,902	138%	55%	0.40
2.57	₹ 3,36,927	₹ 4,17,789	157%	68%	0.43

Estimated salary growth for Level 14 employees at 2.0, 2.38 and 2.57 fitment factors

Current Basic	₹ 1,44,200
Current Gross Salary	₹ 2,73,980

Fitment Factor	Revised Basic	New Gross Salary	Basic Pay Hike	Gross salary hike	Ratio
2	₹ 2,88,400	₹ 3,57,616	100%	31%	0.31
2.38	₹ 3,43,196	₹ 4,25,563	138%	55%	0.40
2.57	₹ 3,70,594	₹ 4,59,537	157%	68%	0.43

Estimated salary growth for Level 15 employees at 2.0, 2.38 and 2.57 fitment factors

Current Basic	₹ 1,82,200
Current Gross Salary	₹ 3,46,180

Fitment Factor	Revised Basic	New Gross Salary	Basic Pay Hike	Gross salary hike	Ratio
2	₹ 3,64,400	₹ 4,51,856	100%	31%	0.31
2.38	₹ 4,33,636	₹ 5,37,709	138%	55%	0.40
2.57	₹ 4,68,254	₹ 5,80,635	157%	68%	0.43

Estimated salary growth for Level 16 employees at 2.0, 2.38 and 2.57 fitment factors

Current Basic	₹ 2,05,400
Current Gross Salary	₹ 3,90,260

Fitment Factor	Revised Basic	New Gross Salary	Basic Pay Hike	Gross salary hike	Ratio
2	₹ 4,10,800	₹ 5,09,392	100%	31%	0.31
2.38	₹ 4,88,852	₹ 6,06,176	138%	55%	0.40
2.57	₹ 5,27,878	₹ 6,54,569	157%	68%	0.43

Estimated salary growth for Level 17 employees at 2.0, 2.38 and 2.57 fitment factors

Current Basic	₹ 2,25,000
Current Gross Salary	₹ 4,27,500

Fitment Factor	Revised Basic	New Gross Salary	Basic Pay Hike	Gross salary hike	Ratio
2	₹ 4,50,000	₹ 5,58,000	100%	31%	0.31
2.38	₹ 5,35,500	₹ 6,64,020	138%	55%	0.40
2.57	₹ 5,78,250	₹ 7,17,030	157%	68%	0.43

Estimated salary growth for Level 18 employees at 2.0, 2.38 and 2.57 fitment factors

Current Basic	₹ 2,50,000
Current Gross Salary	₹ 4,75,000

Fitment Factor	Revised Basic	New Gross Salary	Basic Pay Hike	Gross salary hike	Ratio
2	₹ 5,00,000	₹ 6,20,000	100%	31%	0.31
2.38	₹ 5,95,000	₹ 7,37,800	138%	55%	0.40
2.57	₹ 6,42,500	₹ 7,96,700	157%	68%	0.43

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