8th CPC Revised Pay Calculations: Is your Grade Pay Rs 1,900, Rs 2,400, Rs 2,800 or Rs 4,800? What may be your revised salary, HRA, TA, NPS, CGHS contributions at 2.08 fitment factor

8th Central Pay Commission Revised Salary Calculations: The 8th Pay Commission has immense importance for central government employees. Once the recommendations of the basic salary are implemented, the employees’ house rent allowance (HRA), travel allowance (TA), child education allowance, or other allowance will also be revised. The increased amount will depend on the fitment factor that the pay commission decides. But if you are an employee of Grade 1,900 (Level 2, basic Rs 21,700), Grade 2,400 (Level 4, basic pay 30,500), Grade 2,800 (Level 5, basic pay Rs 34,200), Grade 4200 (Level 6, basic pay Rs 41,100), Grade 4800 (Level 8, basic pay Rs 50,500), Grade 5400 (Level 9, basic pay Rs 67,200), and Grade 5400 (Level 10, basic pay Rs 80,000), what may be your revised salary at a 2.08 fitment factor? Apart from that, what may be your revised house rent allowance (HRA), travel allowance (TA), and National Pension System (NPS) and Central Government Health Scheme (CGHS) contributions?

When will be 8th Pay Commission formed?

The process of the 8th CPC formation is underway. The government is yet to announce the name of the chairman and the members. They can be among the retired chief justices of India, economists, senior retired bureaucrats, subject experts, etc. 

What will be basis of salary revision?

The commission members talk to different trade unions and government department officials to know their salary expectations.

Based on that, they will prepare a report which includes revised pay and allowances.

The decision is made on the basis of the fitment factor, the multiplier for salary and pension revision.

The report will be submitted to the central government, which may suggest some changes before approving it. Once it gets the go-ahead, the revised payout rates come into effect.

Fitment factors for 6th and 7th pay commissions

The 7th CPC, which was implemented on December 1, 2016, has a fitment factor of 2.57. The 6th Pay Commission implemented in the year 2006 had a 1.92 fitment factor. 

What may be 8th Pay Commission fitment factor?

There are many projections that it may be in the range of 1.92-2.86. However, the real magnitude will be known once the recommendations are approved. 

HRA, TA will also be revised

Not just the basic salary, but a lot of allowances, such as HRA and TA, will also be revised. Both these allowances are based on the employee’s place of stay and travel. 

NPS, CGHS charges will also be revised

In central government jobs, the employee contribution to their NPS account is 10 per cent of their basic pay and dearness allowance (DA). Since the employee’s basic pay will be revised, their NPS contribution will also increase by the same percentage.
Likewise, CGHS charges, which are fixed for employees at different levels, will also be revised. 

What will we calculate?

We will calculate the projected revised pay for employees at Grade 1,900 (Level 2, basic Rs 21,700), Grade 2,400 (Level 4, basic pay 30,500), Grade 2,800 (Level 5, basic pay Rs 34,200), Grade 4200 (Level 6, basic pay Rs 41,100), Grade 4800 (Level 8, basic pay Rs 50,500), Grade 5400 (Level 9, basic pay Rs 67,200), Grade 5400 (Level 9, basic pay Rs 67,200), and Grade 6000 (Level 10, basic pay Rs 80,000) at a 2.08 fitment factor? Also know their projected revised house rent allowance (HRA), travel allowance (TA), and revised National Pension System (NPS) and Central Government Health Scheme (CGHS) contributions?. We are calculating HRA at 24 per cent, and TA for higher TPA cities. 

Grade 1,900 (Level 2, basic Rs 21,700)

Projected revised salary- Rs 45,136  
Projected revised HRA- Rs 10,833
Projected revised TA- Rs 1,350
Gross salary- Rs 57,319
NPS contribution- Rs 4,514 
CGHS contribution- Rs 250
Net salary- Rs 52,555

Grade 2,400 (Level 4, basic pay 30,500)

Projected revised salary- Rs 63,440  
Projected revised HRA- Rs 15,226
Projected revised TA- Rs 3,600
Gross salary- Rs 82,266
NPS contribution- Rs 6,344
CGHS contribution- Rs 250
Net salary- Rs 75,672

Grade 2,800 (Level 5, basic pay Rs 34,200)

Projected revised salary- Rs 81,536  
Projected revised HRA- Rs 19,569
Projected revised TA- Rs 3,600
Gross salary- Rs 1,04,705
NPS contribution- Rs 8,154 
CGHS contribution- Rs 250
Net salary- Rs 96,301

Grade 4200 (Level 6, basic pay Rs 41,100)

Projected revised salary- Rs 85,488  
Projected revised HRA- Rs 20,517
Projected revised TA- Rs 3,600
Gross salary- Rs 1,09,605
NPS contribution- Rs 8,549 
CGHS contribution- Rs 450
Net salary- Rs 94,883

Grade 4800 (Level 8, basic pay Rs 50,500)

Projected revised salary- Rs 1,05,040
Projected revised HRA- Rs 25,210
Projected revised TA- Rs 3,600
Gross salary- Rs 1,33,850
NPS contribution- Rs 10,504 
CGHS contribution- Rs 650
Net salary- Rs 1,13,190

Grade 5400 (Level 9, basic pay Rs 67,200)

Projected revised salary- Rs 1,39,776  
Projected revised HRA- Rs 33,546
Projected revised TA- Rs 7,200
Gross salary- Rs 1,80,522
NPS contribution- Rs 13,978 
CGHS contribution- Rs 650
Net salary- Rs 1,46,583

Grade 5400 (Level 10, basic pay Rs 80,000) 

Projected revised salary- Rs 166400
Projected revised HRA- Rs 39936
Projected revised TA- Rs 7,200
Gross salary- Rs 213536
NPS contribution- Rs 16640 
CGHS contribution- Rs 650
Net salary- Rs 1,67,973