The 8th Pay Commission was announced in January 2024, and it is expected to be implemented soon.
This commission will revise the salaries, pensions, and allowances of central government employees and pensioners.
If the fitment factor is set at 1.92, then Level-1 employees—which include peons (multi-tasking staff) and clerks—could see a minimum salary increase of ₹15,044.
How Much Did Salaries Increase Earlier?
So far, a new pay commission is introduced every 10 years:
6th Pay Commission (2006): Minimum salary rose from ₹2,750 to ₹7,000
7th Pay Commission (2016): Increased from ₹7,000 to ₹18,000
Now, all eyes are on the 8th Pay Commission to see how much further the salary will rise.
What is the Fitment Factor?
The fitment factor is a number used to calculate new salaries from the existing pay.
Formula:
New Pay = Old Pay × Fitment Factor
In the 7th Pay Commission, the fitment factor was 2.57
Example: ₹10,000 × 2.57 = ₹25,700
In the 8th Pay Commission, it is expected to be between 1.92 and 1.96
How Much Will Level-1 Salaries Increase?
Level-1 jobs include posts like peon, clerk, and MTS.
If the fitment factor is fixed at 1.92, then their salary may go up by ₹15,044 per month.
Salary Comparison (Level-1 Employee):
Current Salary (7th Pay): Around ₹37,854
Expected Increase in 8th Pay: ₹15,044/month
This means a possible 40% hike if the fitment factor is between 1.92 and 1.96.
However, the final structure will be confirmed only after government approval and the commission’s official recommendations.
Expected Salary Structure Under 8th Pay Commission
| Component | Calculation | Amount (₹) |
|---|---|---|
| Basic Pay | ₹18,000 × 1.92 | ₹34,560 |
| Dearness Allowance (DA @57%) | 57% of ₹34,560 | ₹19,699 |
| House Rent Allowance (HRA @8%) | 8% of ₹34,560 | ₹2,765 |
| Transport Allowance (TA) | Fixed amount | ₹1,350 |
| Gross Salary | Total of above | ₹54,374 |
| NPS Deduction | 10% of Basic + DA = 10% of ₹54,259 | ₹5,426 |
| CGHS Deduction | Fixed amount | ₹250 |
| Net Salary | Gross – Deductions | ₹52,898 |
| Expected Increase | Compared to old salary ₹37,854 | ₹15,044 |
With the 8th Pay Commission, around 1 crore central government employees can expect a significant salary hike, making it a much-anticipated reform in public sector compensation.
