8th Pay commission: Central government employees and pensioners are currently waiting for the announcement of their eighth pay scale. It is expected that the 8th Pay Commission will bring big relief for them. If this is implemented soon, we may see a significant increase in the ‘take-home’ salary of the employees. Here we explain to you a little mathematics related to this.

How much can the salary increase?
According to experts, the fitment factor can be increased from 2.57 to 3.5 or more in the 8th Pay Commission. The increase in fitment factor has a direct impact on the basic salary. For example, if the minimum basic salary of an employee is Rs 18 thousand, then depending on the new fitment factor it can increase to around Rs 25 thousand to Rs 30 thousand. This will significantly increase the total salary you take home.

‘Take-home’ salary formula
Revised Basic Pay= Basic Pay*Fitment Factor

Impact on take-home salary

With increase in basic salary, dearness allowance (DA) will also increase.
House rent allowance (HRA) and other allowances will also increase.
Due to increase in total gross salary, in-hand salary will be higher.

However, in some cases, the increase in PF and other deductions may initially make a slight difference in the take-home, but the overall benefit will be more.

What is included in ‘take-home’ salary?
Your monthly salary includes not only basic but also many other allowances. Let us tell.

Basic Pay: about 51.5%
Dearness Allowance (DA): about 30.9%
HRA: about 15.4%
Transport Allowance: about 2.2%

Let us tell you that DA is reset initially, so even if there is an increase in basic salary in your first pay slip under the new commission, there will not be much increase.

Let us tell you that this time there has been a delay in the announcement of the 8th pay scale. Due to which there is a lot of commotion among the employees. The announcement which is due by the end of March has not been made yet. In such a situation, there is a dilemma among the working class. However, it is expected that it will be announced soon.