8th Pay Commission Salary Calculator
The adjustment of the 8th Pay Commission Salary and Fitment Factor is fundamentally based on the calculation of Minimum Pay. The overall Pay matrix will be affected by the percentage increase in Minimum Pay.
In summary of the calculations and projections presented below, a 34.1% increase in Minimum Pay, along with the neutralization of the Dearness Allowance (DA), would yield a Fitment factor of 2.28 for the 8th Pay Commission, provided that the DA rate is set at 70% as of January 1, 2026.
How 8th pay commission Fitment factor can be arrived?
The determination of the Fitment factor for the 8th Pay Commission is primarily influenced by the Minimum Pay and the Rate of Dearness Allowance. The recommendations of the 8th Pay Commission are scheduled to take effect on January 1, 2026. To establish a new pay scale under this commission, the Dearness Allowance applicable until that date will be disregarded. Subsequently, the neutralized Dearness Allowance rate must be combined with the Current Basic Pay.
a) Calculation of Minimum Pay under the 8th Pay Commission
To ascertain the Fitment factor, the first step is to calculate the revised Minimum Pay, taking into account the current Financial Condition. The Minimum Pay is determined based on the 15th ILC Norms and the Dr. Akroyd Formula, which considers the current market prices of essential goods for a family. Following this, the Fitment Factor, or Uniform Multiplying Factor, can be derived through the process of Dearness Allowance neutralization.
b) Dearness Allowance rate effective from January 1, 2026
It is anticipated that the Dearness Allowance (DA) will increase by 20% as of January 1, 2026, following the upcoming installments. Currently, the DA rate stands at 50% as of January 1, 2024. There are four additional installments of DA scheduled for release on July 1, 2024, January 1, 2025, July 1, 2025, and January 1, 2026. Based on these projections, it is expected that the DA rate on January 1, 2026, could reach 70%.
What will be the Fitment factor in the 8th Pay Commission?
The anticipated Fitment Factor, or Uniform Multiplying Factor, for thre 8th Pay Commission, is estimated to be 2.28. The calculated cost from the Minimum Pay assessment is rounded to ₹41,000, which is the proposed Minimum Pay under the 8th Pay Commission, effective from January 1, 2026. This figure represents 2.28 times the Minimum Pay of ₹18,000 established by the government during the implementation of the 7th Pay Commission's recommendations on January 1, 2016.
Consequently, the basic pay at any level on January 1, 2026 (as per the Pay matrix) will need to be multiplied by 2.28 to determine the appropriate pay for an employee in the revised compensation framework, a multiple of 1.70 facilitates the integration of basic pay with the Dearness Allowance (DA), which is projected to be 70 percent as of January 1, 2026. The remaining portion represents the genuine enhancement introduced by the 8th Pay Commission, amounting to an increase of 34.1%.
Given that the rationalization of pay according to the classification of posts has been accomplished in the 7th Central Pay Commission, there is no necessity to apply varying fitment factors for the levels in the 8th Central Pay Commission.
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