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8th Pay Commission: How much will basic salary and HRA increase based on the fitment factor? Understand the math for Levels 1 to 13.

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8th Pay Commission: How much will salary and HRA rise if the fitment factor is set at 2.0, 2.5, or 3.0? Learn the full calculations and salary hike projections for Levels 1 through 13.

8th Pay Commission: There is ongoing discussion among central government employees regarding the 8th Pay Commission. The most frequent questions concern the fitment factor, as it determines the extent of the increase in employees' basic salary. The fitment factor is a multiplier used to calculate the new salary by multiplying it with the existing basic pay. Media reports suggest it could range between 2.0 and 3.0. Since HRA is directly linked to the basic salary, a significant difference in the total in-hand salary is likely to be observed.

How does the fitment factor work?

Simply put: New Basic Salary = Old Basic Salary × Fitment Factor. For instance, if someone's basic salary is ₹20,000, a fitment factor of 2.0 would raise it to ₹40,000; a factor of 2.5 would make it ₹50,000; and a factor of 3.0 would bring it to ₹60,000. HRA and other allowances also increase based on this revised basic salary.

Potential salary hike for Levels 1 to 10—

Level Current Basic Pay (₹) At 2.0 Fitment At 2.5 Fitment At 3.0 Fitment
Level 1 18,000 36,000 45,000 54,000
Level 2 19,900 39,800 49,750 59,700
Level 3 21,700 43,400 54,250 65,100
Level 4 25,500 51,000 63,750 76,500
Level 5 29,200 58,400 73,000 87,600
Level 6 35,400 70,800 88,500 1,06,200
Level 7 44,900 89,800 1,12,250 1,34,700
Level 8 47,600 95,200 1,19,000 1,42,800
Level 9 53,100 1,06,200 1,32,750 1,59,300
Level 10 56,100 1,12,200 1,40,250 1,68,300

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How much will HRA increase?

HRA is directly linked to the basic salary; therefore, as the basic salary rises, the HRA increases as well. For instance, if an employee's HRA is 24%—

HRA on a basic salary of ₹40,000 = ₹9,600
HRA on a basic salary of ₹50,000 = ₹12,000
HRA on a basic salary of ₹60,000 = ₹14,400
In other words, the higher the fitment factor, the greater the increase in HRA.

Will the salary actually increase by this much?

Currently, all these figures are based on estimates. The actual fitment factor will be determined by the government, and that will decide the final salary. Various reports suggest a range of 2.0 to 2.86 for this factor.