With the 8th Pay Commission working on to prepare its report of recommendations, central government employees have been waiting for a high fitment factor, the multiplier that can help increase their payout. National Council – Joint Consultative Machinery (NC-JCM), the main central government employee body, has demanded a 3.833 fitment factor from the 8th Pay Commission. While experts say it is too high a fitment factor, many of them say the 8th CPC can decide on a fitment factor in the 2.0-2.25 range. But even if the Pay Commission finalises a 2.25 fitment factor, does it also meant that the gross salary of central government employees will increase by the same proportion? Past data shows that in the 7th Pay Commission, gross salaries of employees rose by just 14.29% despite a 2.57 fitment factor. On the other hand, the fitment factor in the 6th Pay Commission was 1.86, but the gross salary hike was 54%. A Bankbazaar projection shows that even if the 8th Pay Commission finalises fitment factors in the range of 2.0-2.57, the gross salary of Level 1-18 employees could only rise only by 31-68%. Gross salary hikes under 4th-7th Pay Commissions If we cast a glance at the gross salary hike data from the 4th to 7th Pay Commission, the maximum hike in gross salary has been 54% under the 6th Pay Commission at a fitment factor of 1.86. The 7th Pay Commission, despite giving a fitment factor of 2.57, delivered the least salary hike at just 14.29%. Gross salary hikes in the 4th and 5th Pay Commissions were 27.60% and 31%, respectively. It may be confusing for a lot of readers to know that how can the gross salary hike be less despite a high fitment factor? Why gross salary hike may be less despite high fitment factor? The prevailing DA rate is a major reason behind it. For example, when the 7th Pay Commission was implemented, the DA rate of 125% of the 6th Pay Commission was factored in. It means without any rise, the prevailing fitment factor was 2.25 (100% for basic pay+125% for DA). So, a 2.57 fitment factor didn’t mean a 157% hike. Manjeet Singh Patel, president, All India New Pension Scheme Employees Federation (AINPSEF), told ET Wealth that other than the high DA rate accommodation, the employees’ basic salaries of the previous pay commission were also normalise in the 7th Pay Commission to draw parity. “So, the average pay hike turned out to be just 14.29%. However, at the time of the 6th Pay Commission, the prevailing DA rate was just 24%, which means the prevailing fitment factor of 1.24 was already there. That’s why a 1.86 fitment factor gave a 54% gross salary hike,” says Patel.Gross salary hike under 4th-7th Pay Commissions Pay Commission Hike in Gross Pay Fitment Factor Minimum Basic Salary 4th Pay Commission 27.60% — ₹ 750 5th Pay Commission 31% — ₹ 2,550 6th Pay Commission 54% 1.86 ₹ 7,000 7th Pay Commission 14.29% 2.57 ₹ 18,000 Main salary components of central government employees While basic salary, DA, HRA and TPTA are common allowances to nearly all central government employees, other salary allowances may vary depending on an employee’s work, status of job, risk in job, place of posting, etc. Estimated gross salary hike in the 8th Pay Commission In its projections, Bankbazaar shows the estimated gross salary increase for Level 11-18 employees at fitment factors of 2.0, 2.38 and 2.57 under the 8th Pay Commission. Projections that only took the basic pay and HRA for calculations show the estimated hike to be 31%-53%. Particulars for gross salary growth calculation Current salary= current basic salary (e.g., Level 1= Rs 18,000) Gross salary= Basic salary+DA (60% of basic pay)+HRA (24% of basic pay for X category cities) Revised basic salary= Current basic payX fitment factor New gross salary= Revised basic salary+ 24% of revised basic salary (for X category city) Basic pay hike (%)= Revised basic-current basic pay (%) Gross salary hike (%)= % hike of new vs old gross salary Growth ratio= Gross salary hike/basic pay hike The gross salary for calculations includes the basic salary, DA and HRA. Estimated salary growth for Level 11 employees at 2.0, 2.38 and 2.57 fitment factors Current Basic ₹ 67,700 Current Gross Salary ₹ 1,28,630 Fitment Factor Revised Basic New Gross Salary Basic Pay Hike Gross salary hike Ratio 2 ₹ 1,35,400 ₹ 1,67,896 100% 31% 0.31 2.38 ₹ 1,61,126 ₹ 1,99,796 138% 55% 0.40 2.57 ₹ 1,73,989 ₹ 2,15,746 157% 68% 0.43 Estimated salary growth for Level 12 employees at 2.0, 2.38 and 2.57 fitment factors Current Basic ₹ 78,800 Current Gross Salary ₹ 1,49,720 Fitment Factor Revised Basic New Gross Salary Basic Pay Hike Gross salary hike Ratio 2 ₹ 1,57,600 ₹ 1,95,424 100% 31% 0.31 2.38 ₹ 1,87,544 ₹ 2,32,555 138% 55% 0.40 2.57 ₹ 2,02,516 ₹ 2,51,120 157% 68% 0.43 Estimated salary growth for Level 13 employees at 2.0, 2.38 and 2.57 fitment factors Current Basic ₹ 1,23,100 Current Gross Salary ₹ 2,33,890 Fitment Factor Revised Basic New Gross Salary Basic Pay Hike Gross salary hike Ratio 2 ₹ 2,46,200 ₹ 3,05,288 100% 31% 0.31 2.38 ₹ 2,92,978 ₹ 3,63,293 138% 55% 0.40 2.57 ₹ 3,16,367 ₹ 3,92,295 157% 68% 0.43 Estimated salary growth for Level 13A employees at 2.0, 2.38 and 2.57 fitment factors Current Basic ₹ 1,31,100 Current Gross Salary ₹ 2,49,090 Fitment Factor Revised Basic New Gross Salary Basic Pay Hike Gross salary hike Ratio 2 ₹ 2,62,200 ₹ 3,25,128 100% 31% 0.31 2.38 ₹ 3,12,018 ₹ 3,86,902 138% 55% 0.40 2.57 ₹ 3,36,927 ₹ 4,17,789 157% 68% 0.43 Estimated salary growth for Level 14 employees at 2.0, 2.38 and 2.57 fitment factors Current Basic ₹ 1,44,200 Current Gross Salary ₹ 2,73,980 Fitment Factor Revised Basic New Gross Salary Basic Pay Hike Gross salary hike Ratio 2 ₹ 2,88,400 ₹ 3,57,616 100% 31% 0.31 2.38 ₹ 3,43,196 ₹ 4,25,563 138% 55% 0.40 2.57 ₹ 3,70,594 ₹ 4,59,537 157% 68% 0.43 Estimated salary growth for Level 15 employees at 2.0, 2.38 and 2.57 fitment factors Current Basic ₹ 1,82,200 Current Gross Salary ₹ 3,46,180 Fitment Factor Revised Basic New Gross Salary Basic Pay Hike Gross salary hike Ratio 2 ₹ 3,64,400 ₹ 4,51,856 100% 31% 0.31 2.38 ₹ 4,33,636 ₹ 5,37,709 138% 55% 0.40 2.57 ₹ 4,68,254 ₹ 5,80,635 157% 68% 0.43 Estimated salary growth for Level 16 employees at 2.0, 2.38 and 2.57 fitment factors Current Basic ₹ 2,05,400 Current Gross Salary ₹ 3,90,260 Fitment Factor Revised Basic New Gross Salary Basic Pay Hike Gross salary hike Ratio 2 ₹ 4,10,800 ₹ 5,09,392 100% 31% 0.31 2.38 ₹ 4,88,852 ₹ 6,06,176 138% 55% 0.40 2.57 ₹ 5,27,878 ₹ 6,54,569 157% 68% 0.43 Estimated salary growth for Level 17 employees at 2.0, 2.38 and 2.57 fitment factors Current Basic ₹ 2,25,000 Current Gross Salary ₹ 4,27,500 Fitment Factor Revised Basic New Gross Salary Basic Pay Hike Gross salary hike Ratio 2 ₹ 4,50,000 ₹ 5,58,000 100% 31% 0.31 2.38 ₹ 5,35,500 ₹ 6,64,020 138% 55% 0.40 2.57 ₹ 5,78,250 ₹ 7,17,030 157% 68% 0.43 Estimated salary growth for Level 18 employees at 2.0, 2.38 and 2.57 fitment factors Current Basic ₹ 2,50,000 Current Gross Salary ₹ 4,75,000 Fitment Factor Revised Basic New Gross Salary Basic Pay Hike Gross salary hike Ratio 2 ₹ 5,00,000 ₹ 6,20,000 100% 31% 0.31 2.38 ₹ 5,95,000 ₹ 7,37,800 138% 55% 0.40 2.57 ₹ 6,42,500 ₹ 7,96,700 157% 68% 0.43