8th Pay Commission: Level-6 Govt Employees’ Salary to Cross ₹84,000? Full Calculation Inside
8th Pay Commission: There’s significant news on the horizon for central government employees. With the potential implementation of the 8th Pay Commission, a substantial salary increase is anticipated. Following the 7th Pay Commission, all eyes are now on the 8th, with expectations of a major salary revision. In particular, employees at the Level-6 position are projected to see a considerable hike in their take-home pay. This post will break down the complete calculation and impact of the salary increase for Level-6 employees. Under the 7th Pay Commission, the basic pay for a Level-6 employee started at ₹35,400. Let’s dive into the detailed calculations to understand how this figure could change with the upcoming Pay Commission.
Salary Calculation
The implementation of the 8th Pay Commission is set to bring a significant change to the salary structure of Level-6 employees. Currently, their basic salary stands at ₹35,400. While the 7th Pay Commission had a fitment factor of 2.57, it is anticipated that the 8th Pay Commission might use a fitment factor of 1.92. Based on this new factor, the basic salary for Level-6 employees could increase to approximately ₹68,000.
The fitment factor is crucial for determining the new pay scale. It is multiplied by the current basic salary to arrive at the new basic salary. If we consider a fitment factor of 1.92, the calculation would be:
New Basic Salary = ₹35,400 × 1.92 = ₹67,968 (rounded to ₹68,000 approximately)
This new basic salary will form the foundation for calculating other allowances.
Allowances and Gross Salary
An employee’s total salary isn’t just their basic pay. It includes various allowances such as Dearness Allowance (DA), House Rent Allowance (HRA), and Travel Allowance (TA).
Let’s see how the gross salary is calculated based on these allowances:
- Basic Salary: ₹68,000
- House Rent Allowance (HRA): For ‘X’ class cities, HRA is 30% of the basic salary. Therefore, 30% of ₹68,000 is ₹20,400.
- Travel Allowance (TA): A fixed amount of ₹3,600 per month will be added as TA.
Thus, the Gross Salary will be:
Gross Salary = ₹68,000 (Basic) + ₹20,400 (HRA) + ₹3,600 (TA) = ₹92,000.
Deductions from Salary
Certain amounts are deducted from the gross salary, primarily for the National Pension System (NPS) and the Central Government Health Scheme (CGHS).
- NPS Deduction: 10% of the basic salary is contributed to NPS. So, 10% of ₹68,000 is ₹6,800.
- CGHS Deduction: A nominal amount is deducted for the health scheme, which is approximately ₹489.
Total Deductions = ₹6,800 (NPS) + ₹489 (CGHS) = ₹7,289.
Net Salary
Finally, the net salary, or the in-hand salary, is what remains after all deductions are made from the gross salary.
Net Salary = ₹92,000 (Gross Salary) – ₹7,289 (Total Deductions) = ₹84,711.
Therefore, with the implementation of the 8th Pay Commission, a Level-6 government employee could receive a net monthly salary of approximately ₹84,711. This represents a significant increase from the current pay, promising to improve the financial stability and standard of living for government employees, who are eagerly awaiting the official announcement.
