8th Pay Commission Salary Hike: How Much Will Level 1 and Level 10 Employees Earn?

The 8th Pay Commission is expected to bring a major salary revision for central government employees.

The 8th Pay Commission remains to be one of the most awaited outcomes for central government employees and pensioners. The exact fitment factor is to be announced by the government, but wage predictions based on 2.1x, 2.5x and 3.0x fitment factors give a look into how much employees in Level 1 and Level 10 may earn when the new pay structure is implemented.

The planned 8th Pay Commission is likely to adjust the pay of roughly 50 lakh central government employees and 65 lakh retirees. The Centre has not yet decided the fitment factor or implementation date, but compensation estimations based on several scenarios have received a lot of attention from employees.

What Is the Fitment Factor?

Fitment factor is a multiplier for arriving at revised base pay under a new pay commission. The more the fitting factor, the more the hike in basic wage of an employee.

Experts have considered three fitting factor possibilities 2.1x, 2.5x and 3.0x but no official figure has been established.

Level 1 salaries - 6 estimates

The minimum basic wage for a Level 1 employee under the 7th Wage Commission is Rs 18,000.

If the government implements

2.1x fitting factor: Basic pay can go up to Rs 37,800 

2.5X fitment factor: Basic salary can be Rs 45,000 up from Rs 18,000 

3.0x fitment factor: Basic pay of upto Rs 54000 Salary Projections Level 10

A big rise is also on the cards for employees at Level 10, where the existing base salary begins at Rs 56,100.

Revised Estimated Salaries are:

Fitment factor 2.1x: Rs 1,17,810 approx 

Fitment factor 2.5x 1,40,250 Approx Rs 3.0x 

Fitting factor: ~Rs 1,68,300 

When will 8th Pay Commission be implemented?

The Union government announced the creation of the 8th Pay Commission, however the committee has not yet submitted its recommendations. The final fitment factor, updated pay matrix, allowances and the date of implementation would be established only once the commission completes its assessment and government adopts its recommendations.

All pay values till such time are indicative estimations based on various assumptions of fitment factor.

What Employees Should Expect

Besides improved base pay, the 8th Pay Commission is also likely to examine Dearness Allowance (DA), House Rent Allowance (HRA), pensions and other service perks. Staff are waiting to see what recommendations the panel will make, which may greatly enhance their entire pay package.