Central Government Pay Hike Incoming! Full Breakdown of 8th Pay Commission Salary
As expectations mount around the implementation of the 8th Pay Commission, a major overhaul of central government employees’ salary structure is anticipated. Here’s a detailed breakdown of the estimated revised pay structure, dearness allowance reset, and net salary under the proposed reforms.
New Delhi: As expectations mount around the implementation of the 8th Pay Commission, a major overhaul of central government employees’ salary structure is anticipated. Here’s a detailed breakdown of the estimated revised pay structure, dearness allowance reset, and net salary under the proposed reforms.
Table of Contents
Revised Basic Pay: Big Jump Expected
The projected fitment factor under the 8th Pay Commission is 1.92, resulting in a sharp increase in basic pay.
Example:
- Current Basic Pay: ₹1,82,200
- Revised Basic Pay: ₹1,82,200 × 1.92 = ₹3,49,824
DA Reset to Zero – Here’s Why
As is standard with every new pay commission, the Dearness Allowance (DA) will reset to 0% initially.
This is because the revised basic pay already factors in previously accumulated DA. Going forward, DA will increase based on All India Consumer Price Index (AICPIN) data.
HRA: 24% for X-Class Cities
Employees residing in X category cities will receive 24% of revised basic pay as House Rent Allowance (HRA).
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Calculation: ₹3,49,824 × 24% = ₹83,958
Travel Allowance Remains Fixed
For senior officers in higher TPTA cities, Travel Allowance is fixed at ₹7,200.
Since DA is zero initially, no additional amount is added here.
Gross Salary Calculation
Gross Monthly Pay = Basic + DA + HRA + TA
= ₹3,49,824 + ₹0 + ₹83,958 + ₹7,200
= ₹4,40,982
Deductions
- NPS Contribution (10% of Basic): ₹34,982
- CGHS Contribution: ₹1,000
- Estimated Income Tax: ₹99,236
Total Deductions: ₹1,35,218
Net Take-Home Salary
Net Salary = Gross Salary – Deductions
₹4,40,982 – ₹1,35,218 = ₹3,05,764
Why Is DA Set to Zero in New Pay Commissions?
The practice of resetting DA during a new pay commission is not new. The accumulated DA from the previous pay structure is merged into the new basic pay via the fitment factor. Future DA hikes will resume, typically semi-annually, based on inflation data.
Key Highlights of the 8th Pay Commission
- Expected Fitment Factor: 1.92 (may go up to 2.57)
- Substantial Basic Pay Hike for all pay levels
- DA Reset to 0%, will increase gradually
- Net Salary Boost despite deductions
- More transparency and streamlined allowances
