8th CPC Salary Projections: As days are passing, most central government employees have been keenly waiting for 8th Pay Commission-related developments. The commission’s formation, its report, and recommendation implementation will impact the payouts that government employees get. One of the most sought-after salary revision aspects will be the fitment factor, which is the multiplier to calculate the revised salaries, pension, and other allowances for employees.
After the government approves the 8th CPC report with the fitment factor, central govt employees are most likely to see a boost in their basic pay, key allowances such as house rent allowance (HRA) and transport allowance (TA), and main deductions such as National Pension System (NPS) and Central Government Health Scheme (CGHS).
For Grade Pay 1800, 2800, 4600, 5400 and 8700 employees, what may be the revised basic salary, HRA, TA, NPS, and CGHS payouts if the 8th Pay Commission decides on a 2.08, 2.57, or 2.86 fitment factor? Know in this write-up.
HRA allowance for central government employees
It depends on the city a central government employee resides in. The rates are 24 per cent for X-class cities, 16 per cent for Y-class cities, and 8 per cent for Z-class cities.
When the dearness allowance (DA) rates reach 50 per cent, HRA rates for X, Y and Z class cities rise to 30 per cent, 20 per cent and 10 per cent respectively.
For X, Y, and Z class cities, these amounts can’t be less than Rs 5,400, Rs 3,600, and Rs 1,800, respectively.
Transport Allowce (TA)
Employees get it to travel between their home and office. This also depends on their city of posting and rank. TA is in the range of Rs 950-Rs 7,200 for different pay scale employees.
NPS contribution
A 10 per cent amount of basic pay and dearness allowance is deducted from an employee’s salary as part of their NPS contribution. The government contributes 14 per cent.
CGHS charges
The government provides health facilities to its employees through CGHS dispensaries and hospitals.
It takes a fixed monthly charge from the salary of every employee.
The charge can be in the range of Rs 250 to Rs 1,000 depending on the rank of an employee.
Calculations for story
We will calculate estimated revised basic pay, HRA, TA, NPS, and CGHS payouts at 2.08, 2.57, and 2.86 fitment factors.
We will take HRA as 24 per cent of basic pay, TA for higher TPTA cities, and CGHS at prevailing rates.
We will take these basic pays from Pay Grades 1800, 2800, 4600, 5400, and 8700 for our story.
Revised basic salary, allowance for employee Pay Grade 1800 (basic pay Rs 20,900)
Revised basic salary, allowance for employee Pay Grade 1800 (basic pay Rs 28,800)
Revised basic salary, allowance for employee Pay Grade 2800 (basic pay Rs 34,900)
Revised basic salary, allowance for employee Pay Grade 2800 (basic pay Rs 44,100)
Revised basic salary, allowance for employee Pay Grade 4600 (basic pay Rs 50,500)
Revised basic salary, allowance for employee Pay Grade 4600 (basic pay Rs 60,400)
Revised basic salary, allowance for employee Pay Grade 5400 (basic pay Rs 61,300)
Revised basic salary, allowance for employee Pay Grade 5400 (basic pay Rs 75,400)
Revised basic salary, allowance for employee Pay Grade 8700 (basic pay Rs 1,30,600)
Revised basic salary, allowance for employee Pay Grade 8700 (basic pay Rs 1,55,900)
(Disclaimer: These are estimates. Actual revised payouts may vary.)
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