8th CPC Salary Calculator: Grade Pay ₹1,800 to ₹2,800… What will the salary of central government employees be? Check the calculation structure.

The fitment factor is the most discussed topic regarding the 8th Pay Commission. A figure of 1.92 times has emerged based on current Dearness Allowance (DA) numbers. Using this as a basis, one can understand the calculation of the potential new basic salary for employees in Levels 1 through 5.

First, let us clarify that the 1.92 multiplier serves as the basis for this calculation; it is a factor derived from the Dearness Allowance. The 8th Pay Commission has not yet declared this as the final fitment factor. While the Central Government has approved the constitution of the 8th Pay Commission and its terms of reference, the final salary structure and fitment factor will be determined by the Commission’s recommendations and the subsequent government decision.

How was the 1.92 figure derived?

This calculation is based on the Dearness Allowance and a projected actual salary hike. Let us assume that the Dearness Allowance is 60% at the time the Pay Commission is implemented. This component will be adjusted to form the new basic salary. In this scenario, the Dearness Allowance on a basic salary of ₹18,000 would be:

₹18,000 × 60% = ₹10,800

Now, adding the basic salary and the Dearness Allowance:

₹18,000 + ₹10,800 = ₹28,800

Next, assuming an actual increase of 20% in the basic salary:

₹28,800 × 20% = ₹5,760

New Basic Salary: ₹28,800 + ₹5,760 = ₹34,560

Now, dividing this by the current basic salary of ₹18,000:

₹34,560 ÷ ₹18,000 = 1.92

Thus, based on this estimate, the fitment factor works out to be 1.92 times. In the 7th Pay Commission as well, a fitment factor was used to transition the existing basic salary into the new salary structure. The official 7th CPC document specified a multiplier of 2.57, and the starting salary for Level-1 in the new salary matrix was set at ₹18,000.

If this 1.92x multiplier were applied to the current basic salary, the scenario would look like this:

These calculations are based on the existing starting salary matrix of the 7th CPC. The official 7th CPC document lists the starting basic salaries for Levels 1 through 5 as ₹18,000, ₹19,900, ₹21,700, ₹25,500, and ₹29,200, respectively.

Let us begin with the lowest salary level—that is, the 1800 Grade Pay. Current basic salary: ₹18,000

60% Dearness Allowance: ₹10,800

Basic salary + Dearness Allowance: ₹28,800

20% additional hike: ₹5,760

Thus, the estimated new basic salary: ₹34,560

Comparing this figure to the current basic salary of ₹18,000 yields a multiplier of 1.92 (₹34,560 ÷ ₹18,000).

This means the estimated new basic salary for Grade Pay 1800 could be ₹34,560.

The current starting basic salary for Grade Pay 1900 is ₹19,900. Applying the 1.92 multiplier: ₹19,900 × 1.92 = ₹38,208. Thus, under this estimate, the new basic salary for Level-2 comes to ₹38,208.

The current starting basic salary for Grade Pay 2000 is ₹21,700. Calculation: ₹21,700 × 1.92 = ₹41,664; meaning the estimated new basic salary is ₹41,664.

The current starting basic salary for Grade Pay 2400 is ₹25,500. Calculation: ₹25,500 × 1.92 = ₹48,960. Based on this, the new basic salary could be ₹48,960.

The current starting basic salary for Level-5 is ₹29,200. Calculation: ₹29,200 × 1.92 = ₹56,064; meaning the estimated new basic salary for Level-5 would be ₹56,064.

Please note that this is merely a calculation of the basic salary. It should not be considered the total in-hand salary. Level Existing Basic Salary Estimated New Basic Salary Difference Level-1 ₹18,000 ₹34,560 ₹16,560 Level-2 ₹19,900 ₹38,208 ₹18,308 Level-3 ₹21,700 ₹41,664 ₹19,964 Level-4 ₹25,500 ₹48,960 ₹23,460 Level-5 ₹29,200 ₹56,064 ₹26,864