8th Pay Commission DA Calculations: Are you Level 3-13 central govt employee? Know how salary hike at 2.4 fitment factor may revise your DA payouts

8th Pay Commission Calculations: A pay commission revises the basic salary for approximately 10 years, but central government employees get a regular increase in their salary through dearness allowance (DA) revision. DA is revised on the basis of the reading of the All India Consumer Price Index- Industrial Workers (AICPA-IW). The government increases DA rates twice a year. It means every 6 months, they adjust employee salaries to rising inflation. But when a pay commission revises the basic salary of employees, the calculation of DA also changes because of the new pay slabs. Know how it may change for Level 3-13 central govt employees if the 8th Pay Commission (8th CPC) picks a 2.4 fitment factor. 

7th Pay Commission basic pay

The 7th Commission decided on a 2.57 fitment factor.

It means the basic salary of central government employees was multiplied by 2.57 times.

It raised the minimum salary to Rs 18,000 and the maximum to Rs 250,000.

Along with this basic pay and other allowances, employees get DA as the main allowance. 

How DA impacts central government employees’ salaries

The current DA stands at 55 per cent. Just have a look at what would have been the estimated salary for an employee with a Rs 25,000 basic salary when the DA rate was 25 per cent, 45 per cent, and now.

Basic salary- Rs 25,000

Salary when DA was 25 per cent- Rs 25,000+ Rs 6,250= Rs 31,250   

Salary when DA was 45 per cent- Rs 25,000+ Rs 11,250= Rs 36,250   

Salary as per current DA rate (55%)- Rs 25,000+ Rs 11,250= Rs 38,750

DA in 8th Pay Commission

The DA is merged at the end of a pay commission with the basic salary. The new DA reading starts at 0. For the 7th Pay Commission, one more DA hike is due. The revised DA is most likely to be merged with the basic pay in the 8th Pay Commission. 

8th Pay Commission fitment factor

The 8th Pay Commission fitment factor will be known once the commission is formed and its report is approved by the central government. There are many speculations and projections. It may be in the range of 1.92-2.86.

Calculations for story

We will calculate the estimated revised basic pay and DA for Level 3 to 13 employees at a 2.4 fitment factor. We will pick one basic pay slab from each level.

Estimated DA for Level 3 employee (basic pay Rs 26,800)

Current basic pay- Rs 26,800
DA (at 50 per cent)- Rs 13,400
Salary at 50 per cent DA now- Rs 40,200
Estimated revised salary- Rs 64,320
DA (at 50 per cent)- Rs 32,160
Estimated salary at 50 per cent DA in 8th CPC- Rs 96,480

Estimated DA for Level 4 employee (basic pay Rs 30,500)

Current basic pay- Rs 30,500
DA (at 50 per cent)- Rs 15,250
Salary at 50 per cent DA now- Rs 45,750 
Estimated revised salary- Rs 73,200
DA (at 50 per cent)- Rs 36,600

Estimated salary at 50 per cent DA in 8th CPC- Rs 1,09,800

Estimated DA for Level 5 employee (basic pay Rs 35,900)

Current basic pay- Rs 35,900
DA (at 50 per cent)- Rs 17,950
Salary at 50 per cent DA now- Rs 53,850
Estimated revised salary- Rs 86,160
DA (at 50 per cent)- Rs 43,080
Estimated salary at 50 per cent DA in 8th CPC- Rs 1,29,240

Estimated DA for Level 6 employee (basic pay Rs 41,100)

Current basic pay- Rs 41,100
DA (at 50 per cent)- Rs 20,550
Salary at 50 per cent DA now- Rs 61,650
Estimated revised salary- Rs 98,640
DA (at 50 per cent)- Rs 49,320
Estimated salary at 50 per cent DA in 8th CPC- Rs 1,47,960

Estimated DA for Level 7 employee (basic pay Rs 55,200)

Current basic pay- Rs 55,200
DA (at 50 per cent)- Rs 27,600
Salary at 50 per cent DA now- Rs 82,800
Estimated revised salary- Rs 1,32,480
DA (at 50 per cent)- Rs 66,240
Estimated salary at 50 per cent DA in 8th CPC- Rs 1,98,720

Estimated DA for Level 8 employee (basic pay Rs 66,000)

Current basic pay- Rs 66,000
DA (at 50 per cent)- Rs 33,000
Salary at 50 per cent DA now- Rs 99,000
Estimated revised salary- Rs 1,58,400
DA (at 50 per cent)- Rs 79,200
Estimated salary at 50 per cent DA in 8th CPC- Rs 2,37,600

Estimated DA for Level 9 employee (basic pay Rs 75,600)

Current basic pay- Rs 75,600
DA (at 50 per cent)- Rs 37,800
Salary at 50 per cent DA now- Rs 1,13,400
Estimated revised salary- Rs 1,81,440
DA (at 50 per cent)- Rs 90,720
Estimated salary at 50 per cent DA in 8th CPC- Rs 2,72,160

Estimated DA for Level 10 employee (basic pay Rs 87,400)

Current basic pay- Rs 87,400
DA (at 50 per cent)- Rs 43,700
Salary at 50 per cent DA now- Rs 1,31,100
Estimated revised salary- Rs 2,09,760
DA (at 50 per cent)- Rs 1,04,880
Estimated salary at 50 per cent DA in 8th CPC- Rs 3,14,640

Estimated DA for Level 11 employee (basic pay Rs 96,600)

Current basic pay- Rs 96,600
DA (at 50 per cent)- Rs 48,300
Salary at 50 per cent DA now- Rs 1,44,900
Estimated revised salary- Rs 2,31,840
DA (at 50 per cent)- Rs 1,15,920
Estimated salary at 50 per cent DA in 8th CPC- Rs 3,47,760

Estimated DA for Level 12 employee (basic pay Rs 1,12,400)

Current basic pay- Rs 1,12,400
DA (at 50 per cent)- Rs 56,200
Salary at 50 per cent DA now- Rs 1,68,600
Estimated revised salary- Rs 2,69,760
DA (at 50 per cent)- Rs 1,34,880
Estimated salary at 50 per cent DA in 8th CPC- Rs 4,04,640

Estimated DA for Level 13 employee (basic pay Rs 1,33,500)

Current basic pay- Rs 1,33,500
DA (at 50 per cent)- Rs 66,750
Salary at 50 per cent DA now- Rs 2,00,250
Estimated revised salary- Rs 3,20,400
DA (at 50 per cent)- Rs 1,60,200
Estimated salary at 50 per cent DA in 8th CPC- Rs 4,80,600